2019 saw very mixed fortunes for the UK funds industry. Of the four main asset classes, equity funds, which had been on track for their first annual outflow on record, pulled out a dramatic 11th hour reversal in December and ended the year with a small surplus. Fixed income funds maintained healthy inflows, but mixed asset funds were the big winners, enjoying another strong, steady year of new capital. Property funds suffered their worst year on record, as investor cash fled the sector.
Key highlights from this month's FFI:
- Equity funds headed for their first full-year of outflows until a last-minute, dramatic turnaround in December, driven by trade outlook and UK election result
- Overall equity fund inflows in 2019 were the weakest in three years at just 19p for every £100 under management
- Active equity funds suffered their worst year on record but passive funds enjoyed their best year yet.
- Fixed income funds enjoyed a third consecutive year of strong inflows
- Mixed asset funds outperformed all the major asset types, with inflows 8x larger than equities and 2x larger than fixed income
- Property funds suffered record outflows, along with previously fashionable absolute return and alternatives funds