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ISA Season Boosts Fund Flows – IA Statistics

By Anna Peel. Originally published at ValueWalk.

ISA Season Younger Investors

Investors put £553 million into funds in April 2022, according to data published today by the Investment Association (IA). April’s inflow follows a £3.5 billion outflow in March. After pulling £7.1 billion out of funds in Q1 2022, a record quarterly outflow, April’s data suggests that ISA season* has helped to boost sales to retail funds.

The 2022 ISA Season

Other key findings for April 2022 include:

  • The 2022 ISA season overall saw net inflows of £934 million, down from £1.4 billion in April 2021 – at the end of the UK’s third lockdown.
  • Fixed Income fund outflows stabilised to £18 million in April, down from £3.3 billion in March – the month in which both the US Federal Reserve and the Bank of England raised rates.

Q1 2022 hedge fund letters, conferences and more

  • Global Equity Income was the bestselling IA sector in April with inflows of £678 million as company dividends have become an increasingly important contributor to overall returns.
  • Responsible investment funds saw inflows increase by nearly 30% in April, rising to £1.2 billion – up from £935 million in March.

Emma Wall, Head of Investment Analysis and Research, Hargreaves Lansdown, said:

“After the significant volatility of March, caused in part by the terrible events in Ukraine, investors returned to markets in April – tempted by the tax year end deadline to make the most of their tax-efficient wrappers. It was a mixed month for HL clients, as some sought out beaten-up growth-biased funds, and others looked to multi-asset funds which prioritise capital preservation. The commodity boom in the aftermath of the Russian invasion also presented buying opportunities for some investors, favouring mining investment trusts – and renewable energy too.

While markets have returned to some stability a month on, the outlook remains challenging. Central banks have committed to higher rates in a bid to counter inflation, war continues to ravage the Ukraine with devastating human impact and continued uncertainty for energy prices and global food supply. Most economists are agreed that 2023 will bring recession, and tightening spending – consumer, corporate and country – will negatively impact global markets. Investors should consider their risk appetite carefully, and ensure their portfolio is positioned to weather the upcoming headwinds.”

Data From HL’s Platform

Top Funds, April (net buy, alphabetical)
Baillie Gifford American
Baillie Gifford Managed
Fundsmith Equity
IFSL Marlborough UK Micro-Cap Growth
JPMorgan Emerging Markets
LF Lindsell Train UK Equity
Lindsell Train Global Equity – Distributing
Rathbone Global Opportunities
Schroder Managed Balanced
Troy Trojan (Class X)
Top Funds, May (net buy, alphabetical)
Baillie Gifford American
Baillie Gifford Managed
Fundsmith Equity
IFSL Marlborough UK Micro-Cap Growth
JPMorgan Emerging Markets
LF Lindsell Train UK Equity
Lindsell Train Global Equity – Distributing
Rathbone Global Opportunities
Schroder Managed Balanced
Troy Trojan (Class X)
Top Investment Trusts, April (net buy, alphabetical)
BlackRock World Mining Trust plc Ordinary 5p
Capital Gearing Trust plc Ordinary 25p Shares
City Of London Investment Trust Ordinary 25p Shares
Edinburgh Worldwide Investment Trust Ordinary 1p
Gore Street Energy Storage Fund plc Ordinary Shares
Greencoat UK Wind plc Ordinary 1p
Monks Investment Trust plc Ordinary 5p
Ruffer Investment Co Ltd Red Ptg Preference Shares
Scottish Mortgage Investment Trust plc Ordinary Shares 5p
Witan Investment Trust plc ORD GBP0.05
Top Investment Trusts, May (net buy, alphabetical)
BlackRock World Mining Trust plc Ordinary 5p
Capital Gearing Trust plc Ordinary 25p Shares
City Of London Investment Trust Ordinary 25p Shares
Edinburgh Worldwide Investment Trust Ordinary 1p
Greencoat UK Wind plc Ordinary 1p
Monks Investment Trust plc Ordinary 5p
Ruffer Investment Co Ltd Red Ptg Preference Shares
Scottish Mortgage Investment Trust plc Ordinary Shares 5p
Tritax Big Box REIT plc Ordinary 1p
Witan Investment Trust plc ORD GBP0.05
Top IA Sectors, April & May (net buy, alphabetical)
Global
Mixed Investment 40-85% Shares
North America
Specialist
UK All Companies

About Hargreaves Lansdown

Over 1.7 million clients trust us with £132.3 billion (as at 30 April 2022), making us the UK’s number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.

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