More than half (54 percent) of U.K. fund groups reported net sales growth in Q1, according to the latest Pridham Report.
Net sales did dip slightly (£1bn) overall, but the fall was negligible compared to the total money deployed in markets, highlighting how investors are holding their nerve in the face of ongoing volatility.
Gross sales remained elevated, growing 3 percent compared with Q4 2024 and 5 percent compared with Q1 2024.
The Pridham Report, by ISS Market Intelligence (ISS MI), monitors sales and asset trends in the U.K. fund market using data supplied by over 45 of the largest fund groups operating in the U.K. It is the most comprehensive report of its kind.
Benjamin Reed-Hurwitz, EMEA Research Leader at ISS MI, says: “Despite a challenging macroeconomic backdrop – with sticky inflation, shifting interest rate expectations and ongoing geopolitical tensions – Q1 2025 was notably calm.
“Q1 felt like going back in time 12 months, with elevated retail gross sales but muted net sales. Flows were slightly negative overall, but the scale of outflows was limited and certainly not indicative of widespread investor panic. Instead, investors and asset allocators played it safe, generally making reallocations at the margins while they digested what recent geopolitical developments mean for long-term return outlooks.
“This is a fluid, opportunity-rich market – one where many are biding their time and waiting for the right moment to redeploy cash or make more significant portfolio adjustments.”
There was a noticeable shift into short-duration fixed-income and money market funds in Q1, suggesting that there were investor bases taking a more cautious, wait-and-see approach while volatility remains high.
However, Reed-Hurwitz says the fact that net sales remained flat suggests that investors are not panicking but instead are becoming more tactical amid the uncertainty.
Reed-Hurwitz added:“Investors aren’t pulling their money out of portfolios altogether. But some are seeking safer harbours until the outlook becomes a little
clearer. In other words, they’re not panicking; they are staying in the market rather than running for the hills.
On a fund group level, Vanguard led the net retail sales table in Q1, reporting net sales of £1.28bn for the quarter. LifeStrategy 80 was its best-seller by net sales.
Artemis followed closely in second, reporting net sales of £1.12bn in Q1 – a record quarter for the group, thanks to strong sales across its active equities offering.
Unitised multi-asset fund gross sales continued to grow in the quarter and also boosted Scottish Widows to sixth on net sales. Scottish Widows’ Horizons funds led the way.
Royal London Asset Management capitalised on demand for short-term fixed income, helping it achieve record onshore gross sales in Q1. Total net sales hit £701m for the quarter – making it the fourth best performer during the quarter.
BNY Investments reported its highest onshore retail sales in a decade, thanks to strong U.S. equity and bond fund sales to U.K. retail investors. It had the ninth highest net sales (£268m) for the quarter.
T. Rowe Price rounded off the top 10 fund groups by net sales, thanks largely to the popularity of its global tech funds. It also found retail success with its offshore funds. It reported onshore net sales of £256m for the quarter.
| Rank | Fund group | Gross sales £m |
| 1 | BlackRock | £11,515.2 |
| 2 | Vanguard | £7,453.0 |
| 3 | Legal & General Investment Management | £6,509.0 |
| 4 | Fidelity | £5,182.1 |
| 5 | HSBC Asset Management | £4,258.2 |
| 6 | Royal London Asset Management | £3,479.0 |
| 7 | Artemis | £2,727.8 |
| 8 | M&G | £1,630.7 |
| 9 | BNY Investments | £1,572.7 |
| 10 | Schroders | £1,510.5 |
| Rank | Fund group | Net sales £m |
| 1 | Vanguard | £1,284.0 |
| 2 | Artemis | £1,126.8 |
| 3 | HSBC Asset Management | £1,025.4 |
| 4 | Royal London Asset Management | £701.0 |
| 5 | Legal & General Investment Management | £637.5 |
| 6 | Scottish Widows | £393.2 |
| 7 | Hargreaves Lansdown | £287.0 |
| 8 | Fidelity | £269.6 |
| 9 | BNY Investments | £268.0 |
| 10 | T. Rowe Price | £256.2 |
Reed-Hurwitz added: “This quarter’s data shows that flows weren’t just concentrated in a handful of categories or groups. Instead, growth was spread across a diverse mix of strategies and asset classes.
“As well as short-term fixed-income and money market funds, we also saw some broadening of equity demand with a number of equity income and even emerging market funds attract net sales.
“While flows appear static in Q1, beneath the surface things were far more dynamic. There’s active capital allocation going on – it just isn’t going on in plain sight.”
In January, Fairstone announced the launch of a managed portfolio service in partnership with JPMorgan Asset Management.
Reed-Hurwitz says the strategic alliance between the two firms set the tone for the rest of year as partnerships look set to continue to dominate the landscape.
Reed-Hurwitz added: “The deal reflects a broader shift in how funds are distributed and sold. As advice firms grow even larger and investment fund flows consolidate, fund groups are having to rethink how they engage with the market. Solution providers have moved front and centre in terms of client portfolio management and as a consequence we’re seeing the rise of institutional-style relationships in what was once a more fragmented landscape.
ISS MI’s recently released “UK Portfolio Construction Uncovered” found that the 50 largest multi-asset solution providers accounted for nearly 50 percent of on-platform financial adviser investment fund gross sales in 2024.
Reed-Hurwitz said:“The scale of such solution partnerships means both parties can co-develop tailored solutions, deepen integration and build long-term partnerships that go well beyond simple fund selection. In an environment where differentiation is increasingly difficult, the ability to embed these type of bespoke solutions helps firms stand out.”
For more information and to access the full report, visit https://www.issmarketintelligence.com/solutions/marketsage/the-pridham-report/
