UK investors have piled into funds this year, with 2017 already the best-selling year since the Investment Association began keeping records.
Net retail sales for September reached a record-breaking £5.6bn while the third quarter was the highest-selling quarter on record with net retail sales of £14bn. The six highest-selling months have all taken place this year.
In the year to the end of September net retail sales totalled £33.7bn bringing the total funds under management to £1.2trn.
Fixed income was the best-selling asset class in September, with net retail sales of £1.8bn, marking the largest monthly inflow into the asset class on record. This was driven by the Sterling Strategic Bond sector, which was the best-selling sector in September with net retail sales of £985m.
The worst-selling sector in September was the UK All Companies sector with an outflow of £111m.
Over the third quarter, fixed income was again the best-selling asset class with net retail sales of £4.9bn.
Chief executive of the Investment Association Chris Cummings says: “The UK asset management industry has had yet another record-breaking month with net retail sales of £5.6bn, surpassing the previous record set in April this year. With three months of the year to go, 2017 is already the best-selling year since IA records began.”
Alastair Wainwright, fund market specialist, adds: “Fixed Income was the most popular asset class in Q3 2017 with £4.9 billion of net retail sales, helped in no small part by the Sterling Strategic Bond sector which was the best-selling sector with £2.3bn.
“Equity was the second best-selling asset class in Q3, at £3.4bn. The Global and Europe ex UK sectors were the second and third best-selling sectors taking in £1.5bn and £1.3bn in Q3, respectively. Notably, the fifth most popular sector was Volatility Managed, which only launched in April this year and took in £864m in Q3.”