UK savers put £5.3 billion into retail funds in Q3 2020, more than three times the net retail sales of Q3 2019 (£1.2bn), according to latest figures published today by the Investment Association (IA). The other key findings:

• Responsible investment funds saw net retail sales of £7.1bn for the year-to-date. This is up from £1.9bn for the first three quarters of 2019.
• Bond funds continued to see strong net retail sales reaching £1.2 billion in September, boosted by the Global Bond sector’s record sales of £937m.
• Active funds saw positive net retail sales of £336m in September 2020, while net retail sales to tracker funds remained consistently strong at £1.3bn.

Chris Cummings, Chief Executive of the Investment Association, said:

“The year so far has seen record investment into responsible investment funds, with over £7bn invested into funds which consider their wider impact on the world. In a year clouded by uncertainty, responsible investment funds are a beacon for how savers can put their money to work to support positive change globally, and our industry can be proud that these funds are reaching new heights of popularity.

“It is also heartening that since the significant outflows in March, net retail sales have continued to recover into September. It remains to be seen just how significantly new COVID-19 restrictions and lockdowns imposed across the UK and internationally will affect investor behaviour as we head towards the end of 2020.”

NEW: latest IA data shows a record £7.1bn flowed into responsible investment funds so far this year.

Follow the link for the latest fund market data for September and Q3: https://t.co/8htSsGJjr1 pic.twitter.com/cLJ7eGse0q

— The Investment Association (@InvAssoc) November 5, 2020

FUNDS UNDER MANAGEMENT AND NET SALES

	Funds Under Management	Net Retail Sales	Net Institutional Sales
September 2020	£1.3 trillion	£1.6 billion	-£1.3 billion
September 2019	£1.3 trillion	£1.1 billion	-£3.2 billion

BEST SELLING INVESTMENT ASSOCIATION SECTORS  

The five best-selling Investment Association sectors for September 2020 were:

1. Global Bonds was first with net retail sales of £937 million.
2. Global was second with net retail sales of £474 million.
3. Mixed Investment 40-85% Shares followed with net retail sales of £390 million.
4. Volatility Managed was fourth with net retail sales of £185 million.
5. UK Gilts was fifth with net retail sales of £94 million.

The worst-selling Investment Association sector in September 2020 was Targeted Absolute Return with an outflow of £266 million.

NET RETAIL SALES BY ASSET CLASS

Fixed Income was the best-selling asset class in September 2020 with £1.2 billion in net retail sales.

Mixed Asset was the second best-selling asset class, with £423 million of inflows.

Money Market funds experienced £281 million of inflows.

Property funds however experienced £18 million in net retail outflows.

Equity funds followed with net retail outflows in September of £93 million.

Other funds (which includes the Targeted Absolute Return, Volatility Managed, and Unclassified sectors) experienced £161 million of net retail outflows in September.

NET RETAIL SALES OF EQUITY FUNDS BY REGION*

Global was the best-selling equity fund region in September 2020, with net retail sales of £184 million.

North America funds were second, seeing net retail inflows of £69 million.

Europe funds came next with net retail inflows in September of £40 million.

Asia funds experienced net retail outflows of £8 million.

Japan funds saw net retail outflows of £145 million.

UK funds saw net retail outflows of £321 million.

TRACKER FUNDS

Tracker funds saw a net retail inflow of £1.3 billion in September 2020. Tracker funds under management stood at £239 billion as of the end of September. Their overall share of industry funds under management was 18.1%.

RESPONSIBLE INVESTMENT FUNDS

Responsible investment funds saw a net retail inflow of £975 million in September 2020. Responsible investment funds under management stood at £40 billion as of the end of September. Their overall share of industry funds under management was 3%.

GROSS RETAIL SALES BY DISTRIBUTION CHANNEL

In September, gross retail sales for UK fund platforms totalled £11 billion, representing a market share of 48%.

Gross retail sales through Other UK Intermediaries including IFAs were £6.8 billion, representing a market share of 29%.

Direct gross retail sales in September were £1.3 billion, representing a market share of 6%.

Source: IA