Gross onshore investment fund sales hit record high in 2025

Gross sales of onshore investment funds hit a record high in 2025 amid a shifting wealth management landscape as portfolios were remodelled, ISS Market Intelligence (MI) has revealed.

Its latest Pridham Report showed that retail onshore gross sales increased by more than £10bn (5 per cent) year-on-year in 2025.

Despite the record highs seen in gross sales, onshore investment fund net sales fell by almost £10bn over the year.

ISS MI stated that while net sales were weak overall, 21 assets managers had increased their onshore net retail sales and more than 70 per cent of reporting offshore managers saw a net sales increase.

The report noted that the findings reflected a transition within the UK’s wealth management sector.

The current landscape involved more outsourced portfolio management, whether that’s model portfolios or unitised multi-asset programmes, a greater use of passive solutions within portfolios, and a move to more globally benchmarked portfolios.

“Opportunity is running hot in today’s market,” commented ISS MI head of research development, EMEA & North America, Benjamin Reed-Hurwitz.

“Gross sales hit record levels in 2025, so it’s important to look beyond weak net flows.

“The UK wealth industry is changing fast. As asset allocation shifts from individual advisers towards model portfolios and multi-asset solutions, portfolios are becoming more global and more passive, while consolidation is concentrating decision-making power.

“That transition is creating a highly competitive environment for fund groups. Not everyone will make the podium, but there are plenty of medals to be won for managers with clear positioning and strong portfolio value.”

Although the fourth quarter of 2025 saw the weakest net sales of the year, over 20 managers still increased their net sales, with opportunity remaining open throughout 2025 to both active and passive managers.

In Q4, investors continued to move away from large-cap US equities amid an uncertain geopolitical environment and concerns over valuations, and diversification was key theme for both asset allocators and investors.

The report also found that offshore funds had continued to perform strongly, with net sales up by £3bn in Q4.

Growth in offshore bond sales was increasingly driven by outsourced portfolio solution providers who valued fund choice.

ISS MI said these groups demonstrated a greater openness to looking to the offshore fund market and incorporating offshore solutions into client portfolios.

“Opportunity across the market is broad, but competition has never been more intense,” Reed-Hurwitz said.

“Success now depends on having a clear value proposition, strong positioning and a demonstrable role within client portfolios — all delivered at a competitive price point.

“In a crowded and fast-moving landscape, firms that can clearly articulate what they do, why it matters and how they add value will be the ones that cut through the noise and win assets.”

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