Mixed asset and global equity funds drive sales in September
The Investment Association's monthly statistics of UK investor behaviour in September 2016 show:
- Total net retail fund sales of £664 million
- Mixed Asset was the best-selling asset class with sales of £374 million
- Tracker funds saw a net retail inflow of £351 million
- Global was the best-selling sector with sales of £393 million
Chris Cummings, Chief Executive of the Investment Association, said:
"Following a difficult and extraordinary first half of the year, net retail sales were positive in the third quarter. Year to date there has been a net retail outflow of £1.6 billion across the industry, however, the growth in underlying asset values has increased industry funds under management by £85 billion in 2016 so far."
Alastair Wainwright, Fund Market Specialist, said:
"Caution was again evident in September as investors moved out of equity funds in favour of arguably less risky mixed asset and money market funds.
"Mixed-asset was the best-selling asset class with investors focusing on the 40-85% Shares and 0-35% Shares sectors. Although 40-85% Shares was the most popular mixed asset sector in absolute terms, it is the 0-35% shares sector that is experiencing the greatest growth across all sectors. Looking at net retail sales relative to the size of the sector we see the 0-35% shares sector experienced net retail sales growth of 3.8% and 2.7% in August and September respectively.
"Money market funds experienced their second best-selling month on record at £297 million. Property fund sales were positive in September as advised and non-advised retail customers bought into the sector, however, discretionary fund managers continued to reduce their holdings in property funds.
"Despite global equity funds being popular in September with over £400 million worth of sales, equity funds overall once again experienced a net retail outflow. Equity funds overall have seen outflows every month in 2016 so far."
