This is the first August that fund flows have ever exceeded £5bn, according to the latest Investment Association data, with responsible investment funds gaining $1.3bn.
Tracker fund sales remained steady at £1.2bn, while the IA Global sector saw net retail sales of £1bn during the month. The worst selling IA sector for the month was UK All Companies which saw outflows of £354m.
UK equities fell out of favour with investors, with outflows of £445m in August compared with inflows of £259m in July.
“We have seen significant net retail sales to funds through the whole of summer 2021. Investors channelled £14.5bn into funds from June to August as rising inflation combined with low interest rates continues to make funds attractive for savers,” said Chris Cummings, chief executive of the Investment Association.
“UK investors are maintaining their commitment to deploying their capital for environmental and social good as well as seeking a financial return. In the run-up to the COP26 climate conference in Glasgow, and as the UK Government commits to generating 100% of electricity from renewables by 2035, investors can play an important role in helping to support the transition to net zero.”