Fixed income funds saw outflows of £356m in August, the first outflows since October 2022.

All Sterling fixed income sectors saw outflows, according to new data published today.

Gross retail sales through financial advisers were £8.9bn, representing a market share of 31.5%, a slight fall from the market share of 32.9% seen in July.

Responsible investments experienced a record outflow of £448m for the month, following a period of weaker sales.

Responsible investment funds under management stood at £96bn at the end of August. Their overall share of industry funds under management was 6.9%.

UK retail savers put a total of £354m into funds in August, according to the data from the Investment Association.

Inflows into Tracker funds doubled to £.16bn (July: £860m).

Tracker funds under management stood at £300 billion at the end of August. Their overall share of industry funds under management was 21.6%.

Global was the best-selling sector with net retail sales of £368m.

Chris Cummings, chief executive of the Investment Association, said: “August, typically a quieter month, saw muted net inflows after a strong July. Consumer confidence about the economy remains unsteady with the impact being felt of the ongoing cost-of-living crisis. While wage growth overtook inflation in June 2023 – the first time since November 2021 – there is still a gap to be bridged between disposable income and investment activity.

“Fixed Income fund flows turned negative for the first time since October 2022. Notably, inflows into index tracking funds doubled to £1.6 billion with strong sales to equity trackers.”

Total funds under management in August fell slightly month-on-month to £1.39 trillion in comparison to £1.44 trillion in July (August 2022: £1.42 trillion).

The Investment Association's figures for fund sales cover retail and institutional sales in authorised unit trusts and open-ended investment companies (OEICs) provided by our membership to UK investors. The figures do not include investment trusts and ETFs.