Investors sold down £25.7 billion of funds in 2022, according to net retail sales figures released by the Investment Association this morning.
Fund sales in 2022 were far worse than during the dotcom crash, the global financial crisis, and around the Brexit vote.
UK equity funds saw £12 billion of outflows while North American funds saw £681 million of inflows.
Tracker funds saw £11 billion of inflows and responsible funds saw £5.4 billion of inflows.
That suggests active, non-ethical funds saw £42 billion of net outflows.
Laith Khalaf, head of investment analysis at AJ Bell, comments: “It’s been a dark year for the UK’s fund management industry, with money flying out of the door by the boatload. 2022 was the worst year for fund sales on record by a country mile, totally eclipsing other weak periods that occurred following the dotcom crash, around the Brexit vote, and in the depths of the financial crisis.
“Indeed, 2022 is the only calendar year in which fund sales to retail investors have been negative, and not by a few pennies either, but to the tune of over £25 billion. The figure is so starkly at odds with what went before that it requires at least one double take. The pain for the investment management industry is compounded by £24.4 billion of institutional fund outflows, taking the total net outflow for the year to an astonishing £50.1 billion.”