View more on these topics

Investment funds see largest retail outflows since financial crisis


Funds saw the largest outflows since the financial crisis as retail investors pulled £463m from investment vehicles in January, the latest data from the Investment Association shows.

Fixed income funds took the brunt of the outflows, with investors pulling £267m from the funds, while multi-asset funds saw £157m of outflows in the month. Equity outflows were more muted at £58m, while property funds saw £27m of outflows.

The monthly outflows are the worst since October 2008, when £493m was withdrawn from the market.

However, tracker funds continued to see inflows, with £543m pouring into the funds in the month.

Investment Association interim chief executive Guy Sears says the volatility seen in January caused the outflows.

He says: “Although there was a small monthly net outflow, equity funds remained popular with positive net sales in North American and Japanese focused funds, while Europe excluding UK funds fared particularly well amid the choppy month.

“Fixed income and mixed asset funds were most affected by outflows, but it is important to note that this was the first net outflow for mixed asset funds in over a year.

“We also saw investor appetite for passive strategies remain strong in January, with net retail sales over £500m.”

Hargreaves Lansdown senior analyst Laith Khalaf says the figures are particularly noticeable as “steady eddy asset classes”, such as fixed income, saw the largest outflows.

He adds: “This January it seems to have been a nasty coincidence that all main asset classes saw outflows at the same time, which resulted in such a negative overall figure. Even the property sector which has been so buoyant of late saw a small outflow.

“Passive funds continue to attract money despite some of the biggest companies in the UK stock market falling foul of the commodity rout, which suggests index trackers are enjoying a secular growth story at the moment.”



Aberdeen to slash fees on three funds

Aberdeen Asset Management is cutting the fees on three of its funds. In letters sent to investors, the asset manager says it will cut fees on the £166m World Emerging Markets Equity fund, the £1bn UK Enhanced Equity fund and the £1.1bn Foundation Growth fund. The annual management charge on the class A shares of the […]


Jupiter assets hit £36bn as it readies fund launches

Jupiter Asset Management has reached £35.7bn in assets under management after seeing £2.1bn in net mutual fund inflows in 2015. The asset manager’s results for 2015, released today, show assets rose from £31.9bn at the end of 2014. The firm saw net inflows of £2.1bn to its mutual funds, up from £1.4bn in 2014. The […]


One in three advisers back FCA commission U-turn

More than a third of advisers would support the return of commission as a revenue source in the advice market, research suggests. A poll of 429 advisers conducted by CoreData Research found that 34 per cent would welcome the return of commission. A further 13 per cent said they were uncertain, while 53 per cent […]

Converting pension savings to a retirement income…

Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. Income drawdown is more flexible than an annuity. However, it also increases the likelihood that individuals won’t be able to maintain their income throughout their lifetime. In this short video, we explain the risks that […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm