The Investment Association (IA) funds universe pulled in £6bn across the first six months of the year despite witnessing sizeable outflows in June.
After five successive months of inflows, the IA universe suffered net redemptions of £986m in June, which IA chief executive Chris Cummings (pictured) attributed to the combined impact of the cost-of-living crisis and an acceleration of monetary policy tightening.
Equities in particular were targeted as retail investors retrieved £1.3bn from the asset class.
Cummings said: “We have seen a positive first half of the year, with retail investors putting just over £6 billion into funds, with the majority of this flowing into fixed income funds.
“June, however, has proved to be both a politically and economically challenging month. With the resignation of three Conservative MPs triggering by elections and stickier than expected inflation in the UK, it can be of little surprise that investors have remained cautious.”
By sector, the best-sellers among retail investors were UK Gilts (£504m), Volatility Managed (£316m), and Specialist Bond (£238m) as fixed income continued to capture investor cash.
Fixed income funds as a whole pulled in a net £126m in June.
Investors continue to turn their back on UK equities
Investors continued to retrieve their money from UK equities, a recurring theme over the last 12 months. In June alone, a net £858m flowed out of the sector.
However, North America suffered £657m net redemptions in June, while the IA Global sector, (£417m) Europe (£104m) and Asia (£29m) also witnessed outflows.
The only region to attract inflows was IA Japan, which pulled in £227m.
Trackers saw net retail inflows of £272m. Passive funds under management stood at £295 billion at the end of June.
| Funds Under Management | Net Retail Sales | Net Institutional Sales | |
| June 2023 | £1.40trn | -£986m | -£3.57 bn |
| June 2022 | £1.38trn | -£4.40billion | -£2.42 bn |
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