UK savers put a cumulative £11.2 billion into retail funds in the second quarter of 2020, according to latest figures published today by the Investment Association (IA). The other key findings:
- Net retail sales reached £2.2 billion in June, marking the third consecutive month of inflows. Inflows for the first half of 2020 reached £8.7 billion.
- Bond funds saw growing net retail sales of £2.1 billion in June, as they continued to recover from March’s significant outflows.
- Tracker funds remain steady, with increasing net retail sales of £2.1 billion in June.
- UK equity funds saw a reversal of fortunes with net retail outflows of £1.1 billion in June.
Chris Cummings, Chief Executive of the Investment Association, said: “Following the highest ever monthly outflow in March, the second quarter of 2020 saw savers invest more than they did throughout the whole of 2019. Sales rebounded strongly from April through to June to reach £11.2bn for the quarter, eclipsing 2019’s annual total of £9.8bn.
“After a solid run of sales, strong economic headwinds began to turn investors away from UK shares in June as they withdrew £1.1bn from UK equity funds. With coronavirus infection rates now rising globally post-lockdown and US real GDP having contracted 32.9% in Q2 – the highest ever fall – the outlook for fund flows for the second half of 2020 remains uncertain.”