Net sales of multi-asset funds in the UK turned positive for the first time in five quarters in Q2 reaching £0.5 billion, according to new data from ISS Market Intelligence.
Multi-asset fund sales soared to over £14bn in the first half of the year, up 25 percent compared with the final six months of 2023.
Funds-of-funds (FoFs) led the way in driving multi-asset sales forward, recording a six-month trailing growth rate of 33 percent.
Regional sales growth of multi-asset funds varied considerably, with Scotland and the North West registering growth of more than 30 percent. By contrast, the North East saw sales fall 9.0 percent.
Benjamin Reed-Hurwitz, EMEA Research leader at ISS MI and lead author of the MPS Report, says: “It’s encouraging to see positive sales for multi-asset funds for the first time in five quarters. However, it’s still too early to call this a trend; at the very least we’ll need to see that replicated in the next quarter’s data to make that call.
“The previously speculated changes around capital gains tax could well explain why more investor money is being directed towards multi-asset funds, given their tax efficiency.”
