Net sales of funds to investors in the UK market hit £63bn (€71bn) in 2017, reports the Investment Association, spurred by strong sales in areas of fixed income and ethical funds.
Together with £118bn 0f growth in the value of existing investments, this helped take total industry assets represented by the IA to £1.2trn (€1.362trn)
Fixed income saw net sales of £14.3bn (€16.2bn) of which more than half went to the Sterling Strategic Bond sector (£7.5bn from UK retail investors), and which made it the best selling sector overall through the year.
Equity funds attracted net investments of £10.5bn, which was up from the total of £8.5bn in the previous year. Global equities attracted some £4bn of net retail money.
Chris Cummings, chief executive of the Investment Association, said: “The high monthly net retail sales seen throughout 2017 continued in December as UK retail investors allocated £3.7bn (€4.2bn) of new money into our industry.2
“Altogether, 2017 was a record breaking year for IA members with funds under management reaching an unprecedented £1.2trn. This was an increase of £181bn from the previous year, with £63bn coming through net sales and £118b through investment growth, equivalent to a 10% return to investors.”
“Notably, over £1bn of net retail money flowed into ethical funds, the highest annual inflow into this type of fund. As sustainable investment becomes an increasing priority for today’s investors, the IA will be launching a Sustainability and Responsible Policy Group to provide a hub for investor leadership to further promote sustainable investment in our industry”