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.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week