Mixed Assets Get Large Singe Allocation Boost
Asset class
- Net flows for February 2025 were +£149m (excluding MMFs, +£1.13bn)
- Mixed assets funds were the best-selling asset class, netting £1.15bn, dominated by one single allocation
Active v passive
- Net flows were split -£3.61bn active/+£3.76bn passive
- Passive mutual funds saw inflows of £2.65bn, as ETFs attracted £1.1bn
Classifications
- Mixed Asset GBP Balanced – Global attracted most assets (+£2.09bn)
- Bond GBP Corporates suffered the largest redemptions (-£3.36bn)
Asset manager
- Schroders had the largest inflows, netting £4.19bn, mainly to mixed assets
Flows by Asset Class
Three-Year Flows
Chart 1: Asset Class Flows, 36 Months, to February 2026 (£bn)
Source: LSEG Lipper
The final quarter of 2025’s GDP growth indicated expansion in major economies, with the growth and inflation picture remaining relatively benign into February.
However, with the exception of December 2025, equities have seen outflows for every month since July 2025, with the latter being the highest on record (-£34.47bn). In that context, February’s redemptions of £747m look almost cheering, although YTD equity redemptions are -£3.95bn. Over the 36 months covered by the graph, UK investors have withdrawn £76.47bn from equity funds.
Over the first two months of the year, mutual funds and ETFs suffered net outflows (-£672m, -£2.145bn ex-MMFs).
Mixed-assets funds are the biggest winners YTD, netting £1.58bn, followed by bonds (+£891m, the result of a strong rebound from heavy January redemptions), alternatives (+£794m), MMFs (+£305m), and commodity funds (+£64m). On the negative side of the equation, besides equities, were real estate (-£287m) and ‘other’ funds (-£68m).
Active versus Passive
Chart 2: Asset Class Flows, Active and Passive, February 2026 (£bn)
Source: LSEG Lipper
Net flows for February 2025 were +£149m (-£3.61bn active/+£3.76bn passive). Excluding MMFs, those figures are +£1.13bn
(-£2.59bn active/+£3.72bn passive).
Mixed-assets funds were the best-selling asset class, netting £1.15bn, almost all active—and, as we’ll see later, dominated by one single allocation. Alternatives came next, posting another relatively strong month (+£653m: +£659m active/-£6m passive). Bonds follow, reversing January’s passive to active rotation (+£227m: -£1.42bn active/+£1.65bn passive), then commodity (+£34m: +£15m active/+£19m passive).
On the negative side of the ledger, MMFs reversed their dominance in January to post £981m redemptions, followed by equities, albeit less egregiously than in January, and with a pronounced active-to-passive rotation (-£785m: -£2.81bn active/+£2.03bn passive). Real estate continues to leak assets (-£98m, all active).
ETFs and Passive Mutual Funds
Chart 3: Passive Asset Class Flows, Mutual Funds v ETFs, February 2026 (£bn)
Source: LSEG Lipper
Passive mutual funds saw inflows of £2.65bn, as ETFs attracted £1.1bn over the month. This is dominated by flows to passive equity (+£2.03bn: +£1.46bn MF/+£568m ETF) and bonds (+£1.65bn: +£1.11bn MF/+£535m ETF).
Meanwhile, passive mixed-assets MFs attracted £79m, MMF ETFs took £36m (versus -£3m ETF), while commodity MFs attracted £3m, as opposed to £16m for their ETF peers.
In terms of passive negative net redemptions, alternatives ETFs shed £7m, and ‘other’ ETFs saw outflows of £47m.
Flows by Classification
Largest Inflows
Chart 4: Largest Positive Flows by LSEG Lipper Global Classification, February 2026 (£bn)
Source: LSEG Lipper
Mixed Asset GBP Balanced – Global attracted most assets in February (+£2.09bn). As is evident from the table below, all this and more is the result of flows to a single share class: the Schroder Foresters Balanced Q Accumulation GBP (+£3.88bn).
Source: LSEG Lipper
Alongside their US peers, UK government bonds have had a strong 12 months, and saw inflows of £1.27bn over February, almost all to passive vehicles, as indicated by the table below.
Source: LSEG Lipper
Although concerns over US valuations remain, Equity US saw a return to popularity in February following earlier redemptions (+£1.05bn, all to passive funds). Over 2025, Equity Emerging Markets Global proved the most popular equity classification, and investors are continuing to allocate (+£625m: +£335m active/+£290m passive).
Equity Europe ex UK (+£587m) and Equity Global (+£576m) also saw inflows, with the latter demonstrating a significant active to passive rotation (-£911m active/+£1.49bn passive).
Bond Global Corporates GBP suffered the heaviest redemptions in December but has bounced back in January (+£728m), and February was another positive month (+£587m, mainly passive). US investment grade bonds performed well in February, helped by some dollar strengthening. While in January, Bond Global USD suffered by far the worst redemptions (-£3.17bn), February saw a partial recovery (+£578m, again, mainly to passives).
Largest Outflows
Chart 5: Largest Outflows by LSEG Lipper Global Classification, February 2026 (£bn)
Source: LSEG Lipper
In January, Bond Global USD bore the brunt of outflows, and in February it was Bond GBP Corporates turn to feel the pain
(-£3.36bn: -£2.66bn active/ -£701m passive).
Otherwise, chart 5 is dominated by equity classifications. Equity UK follows, as is so often the case, despite positive performance over the past year (-£1.21bn: -£759m active/-£452m passive). Equity UK Income also saw redemptions (-£418m), as did Equity UK Small & Mid Cap (-£305m).
Similarly, Asia Pacific equities were top performers over the month, but UK investors have not warmed to the region, with ongoing outflows (-£441m). It’ll be interesting to see what catalyses inflows to this area of the market, and when, because performance alone doesn’t suffice. This, I confess, puzzles me somewhat. For example, funds in the classification can hold South Korea (FTSE World Asia ex Japan has more than 27% exposure to Korea), and the Korean equity rally has boosted Asia Pacific ex Japan’s stellar returns over the month and year: FTSE Korea has returned about 188% over 12 months, the top performing equity market globally. Indeed, contrasting with the bigger funds and larger money-takers in Equity Emerging Markets Global, APAC seems to have a higher Korean exposure. So why aren’t people buying? Answers on a postcard, please.
In terms of sector bets, both Equity Sector Gold & Precious Metals (-£456m) and Equity Sector Information Technology (-£289m) sold off.
Mixed Asset GBP Aggressive – Global have consistently proven the most popular mixed asset category over the past few years, but this month saw a reversal of fortune (-£706m). Mixed Asset GBP Conservative – Global also saw redemptions, albeit of a more modest nature (-£150m).
Flows by Promoter
Chart 6: Largest Positive Flows by Promoter, February 2026 (£bn)
Source: LSEG Lipper
The top 10 fund promoters attracted £10.24bn over February.
Schroders had the largest inflows over the month, netting £4.19bn. This was dominated by one allocation to a mixed-assets fund, with its MA inflow coming to £4bn.
Source: LSEG Lipper
Vanguard followed, with inflows of £1.57bn, mainly to equity funds (+£1.44bn); followed by Artemis (+£833m, with +£682m equity, +£101m bond and +£156m mixed assets).
Source: LSEG Lipper
