UK savers invested £1.4bn in retail investment funds in February, up by over £1bn on the £218m invested in February 2019, according to the IA.
Data from the fund managers’ trade body showed Mixed Asset funds was the best-selling asset class in February, with £711m in net retail sales.
Volatility Managed was the best selling IA sector in February, with £888m in net retail sales.
Chris Cummings, chief executive of the IA, said: “Despite the growing global impact of Coronavirus on economic activity, February in the fund market didn’t reveal any dents in investor confidence, as savers put £1.4 billion into funds across the month.
“However, caution was definitely in the air and savers top preference was for diversified funds, with Mixed Asset funds attracting £711m.
“Few in February could have predicted the impact of a spate of lockdowns on global capital markets, or the extraordinary raft of measures from governments and central banks to help shore up economies around the world. It remains to be seen just how significantly steep market falls have affected investor behaviour in March.”
The 5 best-selling Investment Association sectors for February were:
- Volatility Managed was first with net retail sales of £888 million.
- Mixed Investment 40-85% Shares was second with net retail sales of £355 million.
- £ Corporate Bond followed with net retail sales of £295 million.
- UK Gilts was fourth with net retail sales of £247 million.
- Global was fifth with net retail sales of £206 million.
The worst-selling Investment Association sector in February was £ Strategic Bond with an outflow of £664m.
Mixed Asset was the best-selling asset class followed by Money Market.
Other (which includes the Targeted Absolute Return, Volatility Managed, and Unclassified sectors) was the third best-selling asset class with £422m in net retail sales. Property was next with £52m in net retail sales.
Fixed Income experienced net retail outflows of £96m, while Equity experienced net retail outflows of £210m.
Regionally, Global was the best selling equity fund region with North America second best.