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Where are UK investors currently buying and selling?

30/11/2021

Every month, the Investment Association publishes data that reveals where UK investors are currently buying and selling – as well as how much. Data for September has now been published – so, what does it show? 

 

Retail sales have declined

Earlier data from the IA revealed that, in August, retail sales amounted to £5.3bn – the first time that retail sales had exceeded the £5bn mark in the month of August. This was an increase on the £4.8bn inflows seen in July.

However, the picture for September was very different. September data reveals net retail sales of just £2.3bn – a significant decline from August totals. Based on August data, analysts predicted that 2021 could top the total retail fund sales seen in 2017 – the highest year on record. However, if retail sales continue at the current pace, will this still happen? 

 

A focus on ESG investing

From the IA data, it seems that investors are focusing more and more on ESG investing. Two-thirds of the total fund inflows in September – amounting to £1.6bn – were invested into responsible investment funds, compared with £1.3bn in August. 

IA Chief Executive, Chris Cummings, said at the time of publication: “It is encouraging to see investors’ continuing commitment to sustainability in the run-up to the crucial Cop26 negotiations”. 

 

UK equities declining

However, with so much uncertainty around economy recovery and inflation in the UK, it remains to be seen how UK equities continue to perform after inflows in equities fell from £1.305bn in August to just £984m in September. UK equities also saw outflows of £584m, marking the second consecutive month of outflows from this sector. 

While UK equities saw a decline in retail sales in September, this wasn’t the case across the board. Fixed income retail sales rose from £575m in August to £620m in September, while property assets saw an increase from £23m to £90m in the same period. This is a positive step, after uncertainty over property fund structure led to £499m being withdrawn from property funds between February and June 2021. 

 

“Stable Rise Limited is not authorised or registered by the Financial Conduct Authority. The marketing materials are not intended to provide financial advice nor promote any individual financial products.”

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