You are here: Home - Investing - Experienced Investor - News -

Investors exit UK stock markets

Written by:
Investors continued to shun the UK as Brexit fears weighed, according to the latest statistics from the Investment Association.

The trade body’s monthly statistics for January 2018 showed positive inflows into the three main asset classes. In spite of worries over rising interest rates, Fixed Income led the way with a £1.6bn net inflow from retail investors.

The ‘Global’ sector was the best-selling equity sector with net retail sales of £675m, followed closely by Asia. However, the UK saw net outflows of £532m over the month continuing its recent run of unpopularity.

Adrian Lowcock, investment director at Architas, said: “Investors aversion to the UK continues, and doesn’t look set to change anytime soon as we can expect more uncertainty as Brexit negotiations intensify over the coming months. At the same time investors have recognised the areas of the markets which look attractively valued with Japanese, European and Asian equities all in favour among investors. The US continues to see mild inflows but given the size of its market this suggests investors are going underweight the region. The tax reforms announced at the end of last year haven’t convinced investors here that the US can continue to grow and therefore offers some value.”

Lowcock said the continued popularity of fixed income was surprising given the headwinds for the sector. He added: “The sell-off in the bond market came towards the end of January and, after a period of benign market conditions, it came out of the blue to surprise investors so is unlikely to have impacted demand for the sector in January. It will be interesting to see what the effect will be on investors’ behaviour in February.”

Laith Khalaf, senior analyst at Hargreaves Lansdown, said: “The antipathy towards the UK is now so long in the tooth one has to question whether sentiment is truly reflecting prospects for the UK stock market compared to its global peers. The UK fund sectors are home to many talented managers and UK companies have diversified international income streams, so investors should make sure they’re not just following the herd if they’re thinking about ditching their UK holdings, and have considered reasons for doing so.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
young driver
Young drivers see costs rise

The cost of running a car for young drivers has risen by £180 (8.17%) over the past two years as...