UK fund markets buoyed by ‘Boris bounce’
The UK fund market has benefited from the ‘Boris bounce’, ending the year with December inflows of £3.6bn.
The net retail sales for the month were more than double the November figure and the biggest monthly inflow since January 2018, according to the latest figures published by the Investment Association (IA).
On an individual fund sector level, UK All Companies was the best selling for the month with £772m in net retail sales, its best performance since June 2013. It is also the first time the sector has reached the top since March 2017.
Chris Cummings, chief executive of the IA, said: “Funds markets were buoyed in December by the ‘Boris bounce’ with £3.6 billion invested into funds. Galvanised by the general election result, savers poured £1.3 billion into UK equity funds, reaching inflows last seen in 2013.”
He added: “This new-found confidence was felt across UK plc, with inflows into funds investing in large to small cap UK companies.”
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Equity was the best-selling asset class with £1.8bn in net retail sales. It was followed by Fixed Income with £1.1bn of inflows and Mixed Asset with £782m in sales.
All other asset classes experienced outflows, with Money Marketing experiencing outflows of £108m and £135m in property.
Equity funds performed best in the UK in December with net retail sales of £1.3bn. North America funds trailed with sales of £369m.
Global funds were the only equity region to experience net retail outflows in December, of £197m.