Fund flows rebound with £1.4 billion inflows at the start of 2023

UK investors put £1.4 billion into funds in January in a more positive start to 2023, following December’s outflow of £281 million, according to data published today by the Investment Association (IA).

Key findings for January 2023 include:

  • Bond funds saw the highest inflows in January at £1.6 billion, up from £392 million in December.
  • Equity funds saw outflows increase to £913 million from last month’s £355 million, largely driven by outflows from UK equities at £1.4 billion. European equity outflows softened to £155 million, the smallest outflow since February 2022, when Russia invaded Ukraine. The North America and Asia regions both saw inflows at £363 million and £133 million respectively.
  • North America remained the bestselling IA sector for the third month in a row, with inflows of £364 million. UK All Companies saw the highest outflow for the third month in a row at £1.3 billion, a slight increase from December’s £1 billion outflow.
  • Tracker funds continued to see inflows this month at £982 million.
  • Responsible investment funds returned to outflow at £259 million following weaker net retail sales in the last quarter of 2022.

Chris Cummings, Chief Executive of the Investment Association, said:

“2023 set off with a strong inflow into funds of £1.4 billion, following ten months of net retail outflows in 2022. Inflows in January were largely driven by bonds, with UK Gilts and Corporate and Government Bond dominating the bestselling IA sectors, as investors gravitate back towards secure and high-grade bonds. We can expect to see a stronger year ahead for bond investors, with higher fixed interest rates available as we transition out of a low interest rate environment. On the other hand, UK equities saw the worst outflow since January 2022. The negative news cycle on the health of the UK economy may be impacting investor sentiment towards the UK.”

“However, against a challenging economic backdrop, investing for the long-term has never been more important, and the FTSE rally – a record start to the year – demonstrates the value of staying invested for the long haul in order to reap the future benefits of investing.”  




Funds Under Management  

Net Retail Sales  

Net Institutional Sales  

January 2023

£1.4 trillion 

£1.4 billion

-£5.3 billion

January 2022

£1.6 trillion 

-£1.2 billion

-£3.7 billion


The five best-selling Investment Association sectors for January 2023 were: 

  1. North America with net retail sales of £364 million. 
  2. £ Corporate Bond was second with net retail sales of £290 million. 
  3. UK Gilts followed with net retail sales of £288 million. 
  4. Corporate Bond was fourth this month with net retail sales of £127 million. 
  5. Government Bond was fifth with net retail sales of £127 million.   

The worst-selling Investment Association sector in January 2023 was UK All Companies, which experienced outflows of £1.3 billion.


Fixed Income funds saw inflows of £1.6 billion.   

Mixed Asset funds saw inflows of £812 million.

Money Market saw inflows of £54 million.

Property funds experienced £26 million in inflows.

Other funds (which includes the Targeted Absolute Return, Volatility Managed, and Unclassified sectors) saw £125 million in outflows.

Equity funds saw outflows of £913 million.


North America funds saw net retail inflows of £363 billion.

Asia funds saw inflows of £133 million.

Japan saw outflows of £27 million.

Global funds saw outflows of £84 million.

Europe funds saw outflows of £155 million.

UK funds saw outflows of £1.4 billion.


Tracker funds saw net retail inflows of £982 million in January 2023. Tracker funds under management stood at £295 billion at the end of January. Their overall share of industry funds under management was 20.9%.


Responsible investment funds saw a net retail outflow of £259 million in January 2023. Responsible investment funds under management stood at £95 billion at the end of January. Their overall share of industry funds under management was 6.7%.


Gross retail sales for UK fund platforms totalled £11.4 billion, representing a market share of 49.2%.

Gross retail sales through other UK Intermediaries including IFAs totalled £ 6.6 billion, representing a market share of 28.4%.

Gross retail sales for Discretionary Manager totalled £2.1 billion, representing a market share of 8.9%.

Direct gross retail sales totalled £851 million, representing a market share of 3.7%.

In January, Execution only intermediaries totalled £102 million in gross retail sales and accounted for 0.4% of the market.​


For further information, please contact: 

Arianna Schardt, Communications Executive: [email protected]

T: +44 (0)20 7269 4625  

Helen Ayres, Head of Communications: [email protected]

T: +44 (0)20 7269 4625 

IA press office: [email protected] 

Notes for Editors   

To see a breakdown of the data referenced in this press release, please see all of the tables here

The Investment Association's figures for fund sales cover retail and institutional sales in authorised unit trusts and open-ended investment companies (OEICs) provided by our membership to UK investors. The figures do not include investment trusts and ETFs. 

Each month small revisions to figures have been made since the previous press release. This reflects additional information received by The Investment Association. 

Net retail sales comprise total retail sales minus repurchases (including switches between funds), thus the figures can result in a negative figure or outflow. 

* Regional breakdown for equity funds 

The following Investment Association sectors have been grouped together to compile the figures for regional equity sales: 





North America


Asia Pacific excl. Japan

Europe excl. UK



North America

UK All Companies

Asia Pacific incl. Japan

Europe incl. UK

Global Emerging Markets

Japanese Smaller Companies

North America Smaller Companies

UK Equity Income

China/Greater China

Europe Smaller Companies

Global Equity Income



UK Smaller Companies

India/Indian Subcontinent














Technology and Technology innovation






Financials and Financial innovation










Direct Channels 

Direct includes sales forces and tied agents, private clients and other direct to investor sales without intermediation. 

** The Investment Association’s ISA figures are based on information collected from fund companies and five fund platforms (AEGON, Fidelity, Hargreaves Lansdown, Quilter, and Transact) where they are the ISA provider. Fund business through other ISA providers such as wealth managers is not included. The Investment Association’s figures cover about three-quarters of the whole of the market for funds held in ISAs. 

About the Investment Association (IA): 

The IA champions UK investment management, supporting British savers, investors and businesses. Our 250 members manage £10.0 trillion of assets and the investment management industry supports 122,000 jobs across the UK. 

Our mission is to make investment better. Better for clients, so they achieve their financial goals. Better for companies, so they get the capital they need to grow. And better for the economy, so everyone prospers. 

Our purpose is to ensure investment managers are in the best possible position to: 

  • Build people’s resilience to financial adversity 
  • Help people achieve their financial aspirations 
  • Enable people to maintain a decent standard of living as they grow older 
  • Contribute to economic growth through the efficient allocation of capital. 

The money our members manage is in a wide variety of investment vehicles including authorised investment funds, pension funds and stocks and shares ISAs. 

The UK is the second largest investment management centre in the world, after the US and manages over a third (37%) of all assets managed in Europe.