Net retail sales hit £1bn for the month, with mixed assets and fixed income strategies posting inflows of £861m and £520m, respectively.
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North American equity funds had a third consecutive month of outflows, losing £1.4bn between May and July, while money market was the asset class with the highest level of outflows for the month, at £912m.
Tracker funds continued their positive trajectory, with £702m inflows in July. Their funds under management stood at £301bn at the end of month, representing an overall 21% share of industry FUM.
Responsible investment funds instead experienced the opposite trend, reporting £39m net retail outflows.
The £ Corporate Bond sector was yet again on top for the month with net retail sales of £287m, the IA found, followed by Volatility Managed (£251m); Global Equity Income (£243m) and Corporate Bond (£209m).
The worst selling IA sector for July 2023 was UK All Companies, which experienced £710m in outflows.
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Chris Cummings, CEO of the Investment Association, said: “As the rate of inflation starts to fall more markedly and recession expectations moderate, sentiment is becoming more positive. While investors had been reducing their investments in recent months amid a very unclear economic outlook, July saw net sales of just over £1bn.
“Equity, fixed income and mixed asset funds all benefited from this renewed optimism, with inflows into equity funds reaching £816m – the highest since December 2021.”
