LONDON (20 November 2025) – Just 41 percent of U.K. fund groups reported onshore net retail sales growth in the third quarter, according to the latest Pridham Report.
This represents a significant fall from Q2, when nearly two-thirds of fund groups reported onshore net retail sales growth.
The data suggests that investor confidence remains fragile. Net sales failed to keep positive momentum from the latest tax season, and where the money did flow, it was generally towards lower duration fixed income and money market assets. Equity sales, meanwhile, turned negative.
The Pridham Report, by ISS Market Intelligence (ISS MI), monitors 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.
Benjamin Reed-Hurwitz, Head of Research Development, EMEA & North America at ISS MI, said: “Investor confidence remains fragile, with headlines dominated by U.S. political tensions, concerns over overbought and over concentrated U.S. equity markets, uninspiring economic growth in the U.K. and mounting speculation about tax rises in the Autumn Budget breeding a climate of caution and hesitancy.
“The enduring nature of investor fragility, arguably seen since markets rebounded in 2023, is due to the fact that it is not one cloud, but many, blocking investors’ long-term view. It seems that when one source of uncertainty fades, another emerges. The lack of onshore net retail sales growth in Q3, even when considering the positive returns many asset classes have been delivering, is not all that surprising.”
While overall onshore net retail sales were down, the gross sales picture for asset classes was mixed, with onshore bond fund gross sales growing 8 percent and onshore equity sales falling 9 percent during the quarter. Mixed asset fund sales were flat.
Within equities, passive equities experienced the largest drop in gross sales, however passive net sales remained positive. Passive funds once again showed to be more reactive to investor sentiment, reflecting the extent to which they have moved into the core of portfolios.
On a group level, Vanguard led net sales, benefitting from this continued preference for core passive strategies in Q3, with the group’s U.S. and global strategies proving particularly popular. Its FTSE Global All Cap Index Fund led on net sales.
BlackRock also benefitted, placing third in net sales after experiencing strong passive U.S. equity sales.
Emerging market (EM) strategies were a positive spot within equities, as fundamentals were seen as improving. Investors and asset allocators sought diversification away from concentrated global portfolios.
L&G (Asset Management) sales picked up on this trend landing in fourth for net sales, with EM bond and equity funds driving positive sales activity for the group.
HSBC Asset Management also saw EM success alongside its mixed asset range and achieved the fifth highest net sales figure in Q3.
Reed-Hurwitz said: “Equity investors have had a good time of things over the past few years – especially those with portfolios heavily tilted towards the U.S. – but there are clear signs that they believe the music could soon stop. Investors and asset allocators are increasingly looking for diversification and value beyond U.S. large caps. While this search has become far and wide, Emerging Market funds were one such area to benefit. A real opportunity exists for those willing to offer something that can add genuine diversification.”
Artemis’ sales results meanwhile were against the trend, achieving new records for the groups’ active equity and mixed asset onshore sales. These record setting sales took them to second in the net sales rankings.
Within fixed income, action was concentrated in short-dated, government and money market funds. Highlighting the risk-off sentiment felt by many investors.
Momentum has been building for Aegon Asset Management and the group achieved record bond fund sales in the quarter. The results were powered by the Aegon High Yield Bond Fund. It had the eighth highest net sales figure in Q3.
Reed-Hurwitz said: “The tilt towards fixed income in the third quarter underlines just how cautious investors have become. What’s more revealing is that much of that fixed income demand was concentrated in short duration bond funds, which reflects deep uncertainty about long-term interest rates.”
While mixed asset fund sales were relatively flat during the quarter, opportunity existed for low-cost and differentiated offerings.
Sales for Orbis Investments achieved another U.K. record for the group and the group finished seventh in the net sales rankings, benefitting from an increasing trend among investors to seek out differentiation. The Orbis Global Balanced Fund was its best performer during the quarter.
Reed-Hurwitz concluded: “Diversification remains the theme of 2025 for the U.K. fund industry. Passive funds are here to stay, but so too is demand for differentiated and outcome oriented active solutions.”
| Rank | Fund group | Gross Sales £m |
| 1 | BlackRock | £10,005.7 |
| 2 | Vanguard | £7,149.0 |
| 3 | L&G | £6,142.8 |
| 4 | Fidelity | £5,380.4 |
| 5 | HSBC Asset Management | £4,281.0 |
| 6 | Artemis | £3,206.4 |
| 7 | Royal London Asset Management | £3,189.0 |
| 8 | Schroders | £1,401.5 |
| 9 | Invesco (U.K.) | £1,392.2 |
| 10 | M&G | £1,370.0 |
| Rank | Fund group | Net sales £m |
| 1 | Vanguard | £1,832.0 |
| 2 | Artemis | £1,342.2 |
| 3 | BlackRock | £1,150.8 |
| 4 | L&G | £893.9 |
| 5 | HSBC Asset Management | £723.4 |
| 6 | Fidelity | £436.1 |
| 7 | Orbis Investments | £403.5 |
| 8 | Aegon Asset Management | £281.4 |
| 9 | Hargreaves Lansdown | £192.0 |
| 10 | Man Group | £34.0 |
For more information and to access the full report, visit https://www.issmarketintelligence.com/solutions/marketsage/the-pridham-report/
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