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

UK investors shun UK stock market

0
Written by:
03/05/2018
Asia proved popular with ISA investors in March, but the UK continued to find little support, according to Investment Association data for March.

Overall, ISA sales turned positive for the first time in seven months at £363m, with an additional £256m in the first five days of April.

Retail fund sales in general (ISA and non-ISA) were positive in March, but the net £1.5bn invested paled in comparison with the £4.6bn invested in March 2017.

Asia was the top selling equity market in March, with net retail sales of £232m, in spite of Donald Trump’s trade tariffs creating volatility in the region. The UK All Companies sector was the most unpopular, with net outflows of £432m. Mixed asset and global equity funds also proved popular with investors.

Adrian Lowcock, investment director at Architas, said: “The UK is not just unpopular with foreign investors, it appears the country is still shunned by its own investors. Money continues to flow out of UK equity markets as economic growth remains weak and sentiment remains low while Brexit risk hangs over the country. Although there is a growing voice pointing to the fact the UK market looks cheap in some areas, it is hard to see when and how that will change at present.

“In spite of the trade war threats, Asian equities were the most popular equity sector. This was followed by the US which, although still considered expensive, remains attractive for investors as Trump’s tax cuts are expected to continue to boost corporate earnings and the US economy is well established on the road to recovery.”

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said sentiment towards the UK is now so negative, it begs the question of whether it truly reflects its prospects – especially given the international income streams of so many UK businesses.

She added: “Investors considering moving their money away from the UK should therefore be certain they have robust reasons for doing it before joining what is becoming something of a dash for the door.”

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:
petrol prices rise
Fastest rise in petrol prices for 16 months

Drivers saw petrol and diesel prices rise at their fastest rate in 16-months this April, notching up 3p a litre,...

Close