LONDON (20 August 2026) – U.K. retail net fund sales swung back into positive territory in the second quarter. Driven by strong net inflows into offshore strategies, Q2’s retail net sales topped those recorded in Q2 2025, new data from ISS Market Intelligence (ISS MI) reveals.
ISS MI’s Pridham Report shows retail net sales of close to £5bn for the quarter, reversing the over £4bn of outflows seen in Q1, while total gross sales soared to over £90bn.
The latest quarter’s growth was experienced broadly across the industry with ISS MI’s data showing that 21 of the fund managers that supply data for the Pridham Report with positive net sales in Q2.
Benjamin Reed-Hurwitz, Report Author and Head of Research Development, EMEA & North America at ISS MI, said: “While the upward sales trend in the second quarter was positive, it was also encouraging to see the breadth of sales improvement across the market. With 21 groups recording positive net sales and 22 groups reporting improved net sales, this wasn’t a quarter carried by a handful of names. The field of winners widened, and while the largest passive houses led the way, a good spread of active managers also enjoyed a strong quarter.
“While winning in today’s environment can hardly be called easy for fund managers, it is the case that record levels of money are being put in motion. Gross sales were 20 percent higher in Q2 2026 compared to 2025. A key factor explaining this increased motion are changes in who is in control of the portfolio. The growth in model portfolios is one such example. The preferences of today’s fund selectors are distinctly different from yesteryear’s fund selectors and as a result opportunity is moving to more vistas. Greater adoption of offshore funds, and the resulting rise in net sales for these funds, is case in point.”
On a group level, Vanguard reported record retail offshore net sales, with passive fixed income a major driver of offshore flows. It also reported strong multi-asset onshore sales.
Similar to Vanguard, HSBC Asset Management reported a strong quarter for flows into its multi-asset onshore and retail offshore strategies.
L&G reported record retail gross sales, with flows into its passive strategies particularly strong over the quarter.
T. Rowe Price reported record retail sales, with its U.S. equity and Tech strategies driving most of the flows in Q2.
Franklin Templeton achieved record offshore sales, with its U.S equity strategy accounting for much of that performance.
Hargreaves Lansdown achieved record retail sales, with its HL Multi-Index portfolios being the star performers.
Orbis’ multi-asset funds continue to perform well on a net sales basis in Q2 while growth is being seen in its equity fund range.
Artemis’ Income funds continued their strong recent performance in Q2, as did Fidelity’s equity index funds.
Reed-Hurwitz added:
“Looking ahead, the question is whether this momentum carries into the third and fourth quarters. For the past two years, we have seen strong second quarters only for the second half of the year to disappoint. And with continued economic and political uncertainty on both the global and domestic stages, investor sentiment may well turn as the year progresses.”
The Pridham Report is a comprehensive report monitoring sales and asset trends in the U.K. fund market, using data supplied by over 45 of the largest fund groups operating in the U.K. For more information and to request access to the full report, visit https://www.issmarketintelligence.com/solutions/marketsage/the-pridham-report/
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