Fund flows bounce back post-Budget and US election – IA monthly retail stats release
9 January 2025 – Net retail sales of investment funds returned to positive inflows of £1.6billion in November 2024, following the UK Budget and US election, according to data published by the Investment Association (IA) today.
The monthly inflow follows the two consecutive months of outflows in September and October, as investors took action to avoid the widely anticipated increase in capital gains tax in the UK Budget (£5.9 billion and £3.4 billion respectively).
Key findings for November 2024
- Equities saw inflows of £243 million in November, following extensive outflows of £6.6 billion over the previous two months. North American equities were most popular with net retail sales of £590 million, while global equities also saw an inflow of £400 million.
- UK equity outflows continued, although they fell to £552 million, the best figure since the £445 million outflow in August 2021.
- Fixed Income funds returned to inflow, with net retail sales of £524 million.
- Index tracker inflows remained strong at £1.9 billion. Actively managed funds remained in outflow with net retail sales of -£317 million, though this was the most reduced outflow since their last inflow in December 2021.
- Mixed asset funds saw minor outflows of £45 million.
Equities inflows – An American helping hand
Despite heavy outflows in previous months, investors turned their attention back to equities in November, contributing to overall net retail flows of £1.6 billion. Trump’s victory in the US election triggered a wider positive market reaction as markets priced in a more positive outlook for US equity returns given the Republican’s domestic growth and pro-markets agenda.
North America was the strongest selling IA equity sector in November, with total inflows of £428 million, as well as £162 million to North American Smaller Companies sector funds over the month.
Miranda Seath, Director, Market Insight & Fund Sectors at the Investment Association, said:
“Autumn was a tricky period for investors, with outflows driven by anticipated tax rises in the UK Budget. With the Budget and US election now in the rearview mirror, equities looked to be back in vogue in November, with investors favouring North America and Global equity funds. Outflows from UK equities also slowed to £552 million in November, the lowest they’ve been since August 2021.
“Investors will be watching closely to see what the year ahead holds. Trump’s pro-business agenda is likely to fuel US growth further, potentially leading to higher inflation. However, the prospect of uncertainty lingers, as potential tariffs could significantly impact global trade. In the UK, weaker economic data, combined with the introduction of national insurance contributions for businesses may also lead to price rises. In this climate, both the Bank of England and Federal Reserve are likely to be cautious about cutting rates.”
ENDS
APPENDIX
FUNDS UNDER MANAGEMENT AND NET SALES – November 2024
|
|
Funds Under Management |
Net Retail Sales |
Net Institutional Sales |
|
November 2024 |
£1.53 billion |
£1.57 billion |
-£793 million |
|
November 2023 |
£1.37 billion |
-£3.13 billion |
-£2.68 billion |
BEST SELLING INVESTMENT ASSOCIATION SECTORS
The five best-selling Investment Association sectors for November 2024 were:
- Short Term Money Market with net retail sales of £648 million.
- North America followed with net retail sales of £428 million.
- Global with net retail sales of £423 million.
- Volatility Managed with net retail sales of £339 million.
- Corporate Bond was fifth with net retail sales of £304 million.
The worst-selling Investment Association sector in November 2024 was Mixed Investment 20-60% Shares which experienced outflows of £329 million.
NET RETAIL SALES BY ASSET CLASS
Fixed Income saw £524 million in inflows.
Money Market saw £522 million in inflows.
Other saw £287 million in inflows.
Equity saw £243 million in inflows.
Property saw £34 million in inflows.
Mixed Asset saw £45 million in outflows.
NET RETAIL SALES OF EQUITY FUNDS BY REGION*
North America saw net retail inflows of £590 million.
Global funds saw net retail inflows of £400 million.
Japan funds experienced outflows of £145 million.
Europe funds experienced outflows of £222 million
Asia funds experienced outflows of £342 million.
UK funds saw net retail outflows of £552 million.
TRACKER FUNDS
Tracker funds saw net retail inflows of £1.88 million in November 2024. Tracker funds under management stood at £374.4 billion at the end of November. Their overall share of industry funds under management was 24.5%.
RESPONSIBLE INVESTMENT FUNDS
Responsible investment funds saw a net retail outflow of £524 million in November 2024. Responsible investment funds under management stood at £106.0 billion at the end of November. Their overall share of industry funds under management was 6.9%.
For further information, please contact:
Helen Ayres, Head of Communications: [email protected]
T: +44 (0)20 7269 4620
Ellen Hodgetts, Communications Manager: [email protected]
T: +44 7548841289
IA Press Office: [email protected]
Notes to Editors
To see a breakdown of the fund data referenced in this press release, please see all of the tables here.
The Investment Association's figures for fund sales cover retail and institutional sales in authorised unit trusts and open-ended investment companies (OEICs) provided by our membership to UK investors. The figures do not include investment trusts and ETFs.
Each month small revisions to figures have been made since the previous press release. This reflects additional information received by The Investment Association.
Net retail sales comprise total retail sales minus repurchases (including switches between funds), thus the figures can result in a negative figure or outflow.
* Regional breakdown for equity funds
The following Investment Association sectors have been grouped together to compile the figures for regional equity sales:
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Asia |
Europe |
Global |
Japan |
North America |
UK |
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Asia Pacific excl. Japan |
Europe excl. UK |
Global |
Japan |
North America |
UK All Companies |
|
Asia Pacific incl. Japan |
Europe incl. UK |
Global Emerging Markets |
Japanese Smaller Companies |
North America Smaller Companies |
UK Equity Income |
|
China/Greater China |
Europe Smaller Companies |
Global Equity Income |
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UK Smaller Companies |
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India/Indian Subcontinent |
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Specialist |
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Healthcare |
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|
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Technology and Technology innovation |
|
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|
|
|
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Financials and Financial innovation |
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Direct Channels
Direct includes sales forces and tied agents, private clients and other direct to investor sales without intermediation.
** The Investment Association’s ISA figures are based on information collected from fund companies and five fund platforms (AEGON, Fidelity, Hargreaves Lansdown, Quilter, and Transact) where they are the ISA provider. Fund business through other ISA providers such as wealth managers is not included. The Investment Association’s figures cover about three-quarters of the whole of the market for funds held in ISAs.
About the Investment Association (IA):
- The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £9.1 trillion of assets and the investment management industry supports 126,400 jobs across the UK.
- Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers.
- Our purpose is to ensure investment managers are in the best possible position to:
- Build people’s resilience to financial adversity
- Help people achieve their financial aspirations
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- Contribute to economic growth through the efficient allocation of capital.
- The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs.
- The UK is the second largest investment management centre in the world, after the US and manages 37% of all assets managed in Europe.
