LONDON (12 August 2025) – Two-thirds (65.8 percent) of U.K. fund groups reported onshore net retail sales growth in Q2 2025, according to the latest Pridham Report.
However, despite the improvement in net flows for the majority of fund groups, gross sales were flat against the previous quarter. Much hesitancy remains amongst investors, advisers and asset allocators towards how to position portfolios in the current environment.
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. It is the most comprehensive report of its kind.
Benjamin Reed-Hurwitz, Head of Research Development, EMEA & North America at ISS MI, said: “Our flows data for the second quarter reveals that tariff anxiety did not break the sales momentum that has been building in 2025.
“Despite a small dip in gross sales, net flows turned positive as cooling geopolitical tensions meant that many portfolio decision makers felt being in the market was a better option than staying on the sidelines at the current time.
“That said, this recovery still has a fragile feel to it. We believe that confidence is growing, but it’s being built against a backdrop of unpredictable geopolitical flashpoints and fiscal risks. The investment mood appears to be more optimistic than it has been, but it seems like it wouldn’t take much to knock things off course.”
Equities drove fund flows in Q2, with gross sales rising 2.7 percent quarter-on-quarter. North American equities once again took centre stage.
That’s in stark contrast to onshore fixed income, which suffered an over 10 percent quarter-on-quarter fall in gross sales. Fixed income sales continue to be in a holding pattern with uncertainty over the future of rates likely at the root of it. Government bonds, short duration and money market funds all found pockets of sales success. Attractive deposit and money market rates remain a hurdle to unlocking the wealth of investor cash sitting on the sidelines.
| Rank | Fund group | Gross sales £m |
| 1 | BlackRock | £9,036.7 |
| 2 | Vanguard | £7,395.0 |
| 3 | Legal & General Asset Management | £6,583.4 |
| 4 | Fidelity | £6,031.3 |
| 5 | HSBC Asset Management | £4,811.4 |
| 6 | Royal London Asset Management | £3,587.0 |
| 7 | Artemis | £2,827.6 |
| 8 | M&G | £1,782.6 |
| 9 | Schroders | £1,523.3 |
| 10 | JPMorgan AM | £1,310.8 |
| Rank | Fund group | Net sales £m |
| 1 | Fidelity | £1,285.1 |
| 2 | HSBC Asset Management | £1,241.1 |
| 3 | Vanguard | £1,163.0 |
| 4 | Artemis | £825.5 |
| 5 | Aberdeen Asset Management | £356.7 |
| 6 | Royal London Asset Management | £309.1 |
| 7 | T. Rowe Price | £242.6 |
| 8 | Orbis Investments | £241.3 |
| 9 | Hargreaves Lansdown | £207.0 |
| 10 | Man Group | £149.0 |
On a fund group level, Fidelity’s sales were at record levels for quarterly onshore gross retail sales, reaching £6,031.3m in Q2. It also led the industry for onshore retail net sales. Its success was broad‑based, with strong flows across multiple asset classes and both active and passive strategies.
Reed-Hurwitz added: “We saw improvements in both active and passive fund sales in Q2, as market volatility created fresh opportunities and renewed momentum for active managers. Interestingly, the continued growth of passive investing is opening the door for alpha-focused strategies to shine. With more investors gaining low-cost access to broad market exposure, the role of active managers in delivering diversification and uncorrelated returns is becoming even more important.”
M&G’s actively managed line-up delivered elevated retail gross and net sales, supported by near-record onshore equity sales. Its flagship Japan fund remains a standout performer and led sales for the group.
Aberdeen Asset Management built on its strong start to the year with net sales of £356.7m – a recent high. Its World Equity Enhanced Index fund was the group’s best‑selling onshore product, highlighting the growing momentum behind enhanced index and quantitative strategies in the U.K. market.
Reed-Hurwitz added: “Enhanced index and quantitative strategies are gaining real traction in the U.K. market. By combining active and passive elements, the strategy mirrors today’s blended portfolios. While plain-vanilla passive has increasingly captured the core of portfolios, we believe that investors are now looking for more nuanced ways to gain low-cost equity exposure.
“Part of the appeal is cost – these approaches still come in well below the price of fully active management – but also alpha and diversification. Portfolio constructors are being challenged to create cost-conscious solutions with an element of alpha that is also differentiated from an ever-expanding peer group. As a result, we’re seeing a blurring of the lines between active and passive, with more solutions providers innovating in this space.”
HSBC Asset Management, driven primarily by demand for passive equity and mixed asset strategies, also achieved a record for onshore retail gross sales. Gross sales hit £4,811.4m in Q2. With offshore included, it topped the rankings for combined retail net sales.
Orbis’ differentiated multi-asset strategies propelled it to another quarterly retail sales record. Gross sales hit £313.9m. Although low-cost and passively oriented mixed asset strategies having been winning the war for flows of late, Orbis’ success highlights that demand remains for complimentary active strategies.
For more information and to access the full report, visit https://www.issmarketintelligence.com/solutions/marketsage/the-pridham-report/
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