U.K. investors increasingly unwilling to pay a premium for active funds – regardless of performance

LONDON (22 October 2026) - U.K. active fund investors appear to have become increasingly unwilling to pay a premium for the promise of market-beating returns, new analysis of U.K. fund flows from ISS Market Intelligence (ISS MI) reveals.

In a sign of how price sensitive investors have become, ISS MI's data show that over the past decade, investors have pulled billions of pounds out of funds with the highest fees over the past decade - even where those funds have outperformed their peers.

U.K. investors withdrew £1.9bn from funds in the fourth quartile for fees (most expensive) and first quartile for performance (best performing) in the three years to July 2026.

By comparison, investors simultaneously poured £14.1bn into active funds that were first quartile for fees (cheapest) and first quartile for performance (best).

About ISS Market Intelligence
ISS Market Intelligence (MI) is a leading provider of data, insights, and market engagement solutions to the global financial services industry. ISS MI empowers asset and wealth management firms, insurance companies, distributors, service providers, and technology firms to assess their target markets, identify and analyze the best opportunities within those markets, and execute on comprehensive go-to-market initiatives to grow their business. Clients benefit from our increasingly connected global platform that leverages a combination of proprietary data, powerful analytics, timely and relevant insights, in-depth research, as well as an extensive suite of industry-leading media brands that deliver unmatched market connectivity through news and editorial content, events, training, ratings, and awards.

About ISS STOXX
ISS STOXX GmbH, through its group companies, is a leading provider of comprehensive and data-centric research and technology solutions that help capital market participants identify investment opportunities, detect qualitative and quantitative portfolio company risks, and meet evolving regulatory requirements. With roots dating back to 1985, we today deliver world-class benchmark and custom indices across asset classes and geographies and serve as a premier source of independent corporate governance, sustainability, cyber risk, and fund intelligence research, data, and related offerings. Our products and services give clients the scale and leverage they need to grow their business more effectively and efficiently. ISS STOXX, which is majority owned by Deutsche Börse Group, is comprised of more than 3,800 professionals operating across 30 global locations in 20 countries. Its approximately 5,500 clients include many of the world's leading institutional investors who turn to ISS STOXX for its objective and varied offerings, as well as companies focused on ESG, cyber, and governance risk mitigation as a shareholder value enhancing measure. Clients rely on ISS STOXX's expertise to help them make informed decisions to benefit their stakeholders.