Asset class view UK mutual funds and ETFs saw outflows of £6.76bn over February (-£5.12bn ex-MMFs). Equities saw the largest redemptions (-£3.48bn). Active v passive The active-to-passive bond rotation, which has been a feature of the market since 2021, reversed. Some £3.73bn was redeemed from passive bond funds, while their active peers took £1.49bn. Classifications Equity Global was the top-selling classification for the month, netting £1.87bn (£1.18bn active/£689m passive). UK equity funds suffered redemptions of £2.77bn over the month. Sustainable fund flows Sustainable funds netted a total of £367m for the month, conventional funds lost £8.26bn. MMFs were the most

Asset class view Money market funds (MMFs) saw the largest inflows, with £6.7bn Bond inflows were less than half of Decembers, at £1.61bn—the lowest since last September’s redemptions. Active v passive Mutual funds and ETFs took £6.4bn over January, with redemptions of £303m excluding MMF. Active equity strategies suffered the largest redemptions, shedding £3.13bn. Classifications Outside of cash, investors favoured US and global equities, alongside USD and GBP investment grade bond funds. UK equity funds suffered redemptions of about £1.7bn over the month. Sustainable fund flows Sustainable flows were positive for MMFs (£33m) and bonds (£133m). Sustainable equity funds suffered

That 2024 was the year for US equities will shock no one, with all eyes on the Magnificent Seven stocks. Investors have been transfixed by AI, and the US mega caps are believed best positioned to deliver them. Nevertheless, this run is more than a gargantuan “meme” run, with the likes of Amazon, Alphabet, and Nvidia delivering strong earnings, and consensus being that they will continue to do so. To hedge my bets, that’s not a recommendation either way: consensus has often been wrong footed, from the global financial crisis way back to Tulipmania. However, UK fund investors’ 2024 can

Flows Turn Positive After Two Years in Red Executive Summary   Aggregate flows for the year were £27.78bn (£16.29bn, ex MMFs). Bond funds enjoyed the largest absolute flows, netting £13.7bn. Active funds suffered outflows of £815m (considerably down on 2023’s redemptions of £76.59bn), while passive mutual funds took £25.24bn and ETFs attracted £3.36bn. Equity US netted £19.54bn, dwarfing not just the flow to equity funds overall, but also exceeding the inflows to all long-term investment funds. This was predominantly to active strategies. Equity UK lost £20.89bn, with £15.13bn of this from active strategies. Equity UK Income (-£6.12) and Equity UK

Sustainable Fund Flows Turn Negative for First Time in Q4 as Equities Dive Asset Class: Q4 saw net outflows of £2.24bn, driven by large redemptions from equity funds of £3.54bn—the first ever quarter of negative net flows. Classification: Equity US was the year’s best-selling sustainable classification, with inflows of £13.5bn, exceeding the entire annual take for sustainable equities. Active v Passive: In 2024, sustainable passive bond funds attracted £1.84bn with £1.59bn to active, while passive equities took £3.37bn and active £8.68bn. Fund manager: BlackRock enjoyed the highest sales of sustainable funds in 2024, with inflows of £20.55bn, overwhelmingly to equities.

Asset class view Net fund flows for the month were negative £1.28bn, or £1.87bn excluding MMFs. Bond funds have been the main beneficiaries in December, with inflows of £3.79bn. Active v passive Bond flows were split £950m to active funds and £2.84bn to passives. Passive funds took a total of £3.18bn, split £2.73bn to mutual funds and £448m to ETFs. Classifications Mixed Asset GBP Aggressive funds saw the largest net flows, attracting £1.11bn. Equity US saw redemptions of £723m, £473m of which was from passive funds. Sustainable fund flows Sustainable funds ex MMFs for December saw outflows of £888m, mainly

Headline figures   Assets Under Management[1] Chart 1: Assets Under Management of ETFs Listed on the LSE by Asset Type, December 30, 2024 (£bn) Source: LSEG Lipper   Despite a worrying month for equities, with one of the largest drawdowns in the S&P 500 and MSCI ACWI since the global financial crisis, equity share of LSE-listed ETF assets continues to creep upwards, now making up fourth-fifths of the total. Equity and bond funds comprise the bulk of total assets at 80% and 17.7%, respectively. Total ETF assets were to £1.27trn in December, growing 30.4% year on year. Money market funds

Asset class view Total funds flows for the month were £13.97bn (£4.98bn, ex-money market funds). MFFs took most, at £8.99bn, the largest net flows for the asset class since December 2023.   Active v passive Long-term passive vehicles netted £5.84bn while their active equivalent saw outflows of £861m.. Passive mutual funds saw inflows of £6.24bn, while ETFs suffered outflows of £433m..   Classifications Some £1.92bn flooded into Equity UK funds, with £1.26bn of this going into passive vehicles. The largest outflows for the month were from Bond GBP Corporates, shedding £2.23bn.   Sustainable fund flows Total sustainable fund flows ex

The world is becoming a riskier place—and not just at the obvious level of wars and climate change. Equity markets are becoming intrinsically riskier because they are becoming more concentrated. Taking the iShares MSCI ACWI ETF as a proxy for global equity weightings by country, the US was 61.92% of the fund in September. Apple is the largest stock in the ETF (and, of course, the index), weighing in at 4.33% of the portfolio. That doesn’t seem too hefty, but that’s more than any country weight, other than (obviously) the US, and then Japan at 5.05%. The UK comes third,

Asset class view Bonds took £2.6bn, split £3.49bn to passives and -£887m to active funds. Equities were the second-most popular asset class, with £1.15bn of inflows, while money market funds saw outflows of £5.2bn.   Active v passive Ex MMFs, active strategies took £2.23bn as passives netted £1.07bn. Passive equity funds suffered redemptions of £2.51bn as their active peers attracted £3.66bn.   Classifications Equity Global ex UK was the top-selling classification, netting £6.22bn. Equity UK had a rare spike in sales, with inflows of £2.04bn.   Sustainable fund flows Total sustainable fund flows were £6.69bn, as conventional funds shed £3.01bn

Trends in the UK’s sustainable and conventional fund market through the lens of Lipper data. How is sustainable investment responding to the birth of the UK’s SDR? Dewi John, LSEG Lipper’s Head of Research for UK and Ireland, and Leevania Naicker, Senior Customer Learning Manager at LSEG, look at the UK’s responsible investment fund flow data, alongside the general state of the UK fund market for Q3 2024, in the context of broader economic trends.

Sustainable Bonds and Mixed Assets in the Red Over Q3 as Equity Increases Asset Class: Sustainable funds took £14.93bn over Q1-3 2024, compared to conventional funds outflows of £7.46bn, with sustainable equities netting £13.68bn. Classification: Equity US is the best-selling sustainable classification, with inflows of £13.5bn YTD. Conventional flows over the period were a more modest £1.6bn. Active v Passive: Passive bond redemptions for Q3 stood at £757m, as active bond funds saw inflows of £90m for the quarter. Fund manager: BlackRock saw inflows of £16.55bn, overwhelmingly to equities.   Note that this report has narrowed its focus from broad