Morningstar: Fixed income remains only asset class to gain net inflows in July
Passive strategies saw modest inflows in July, while active funds saw sustained redemptions.
UK investors piled £698m into fixed income last month, bringing the total net flows into the asset class for the year to date to £2.9bn.
Every other asset class lost investor cash, led by the UK equity sector, which shed £2.9bn in July alone, followed by the allocation sector which saw outflows of £1.3bn during the month.
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Overall in July, the UK had outflows of £3.8bn. Passive strategies saw modest inflows of £544m, while active funds saw sustained redemptions as investors took back £4.4bn.
Sustainable labelled funds tipped into net outflows for the year-to-date, losing £1.2bn. There were outflows from both sustainable and non-sustainable labelled funds in July.
Sterling government bond, global equity income, and global corporate bond GBP-hedged had the top category inflows, with the HL Global Corporate Bond fund explaining nearly all the flow in the latter.
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Global large-cap growth equity and sterling flexible allocation saw over £1bn redeemed each in July. Fundsmith Equity, which saw £727m redeemed, and Schroder Diversified Growth, where investors pulled out £633m, explained the majority of both of these.
BlackRock (£649m), Aviva (£89m), and HSBC (£129m) were the only large managers to see net inflows. Meanwhile, Baillie Gifford saw £990m redeemed in July, while Fundsmith Equity shed £727m.
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