The UK fund management industry has now achieved a year of monthly inflows, according to data from the Investment Association, after positive net retail sales of £3.5bn were recorded in July 2017. 
In July, there were positive retail inflows across all asset classes aside from Money Markets, which saw its first monthly outflow since January 2016. The month’s figures were the strongest July on record and took the total amount invested by retail clients in 2017 to £23.1bn.
Chris Cummings, chief executive of the Investment Association, said: "The UK asset management industry continues to thrive in 2017 as July marked 12 consecutive months of positive retail inflows."
Bond funds were the most popular asset class after posting a net retail inflow of £1bn. Multi-asset funds attracted £958m (there have only been three months out of the past five years when multi-asset funds were hit with net outflows) and equity funds took in £924m.
Retail inflows into property funds amounted to £32m while money market funds saw net retail outflows of £124m.
Source: Investment Association
The worst-selling sector in the Investment Association universe was IA UK All Companies, which was hit with an outflow of £214m in July 2017.
In addition, the Investment Association figures show that tracker funds saw a net retail inflow of £555m in July. This takes their assets under management (AUM) to £155m, which means their industry funds under management is 13.7 per cent, compared with 12.7 per cent in July 2016.
Some £817m flowed into fund of funds products, moving their AUM to £143bn. These funds now account for 12.6 per cent of industry funds under management, up from 11.9 per cent one year earlier.
Net retail sales of ethical funds were £129m during the month. AUM here is £14bn, representing a 1.2 per cent share of industry funds under management.