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

Fund sales: ‘spooked’ investors remain cautious ahead of EU vote

0
Written by:
01/06/2016
UK investors continued to adopt a cautious approach in the first month of the new tax year, with fixed income and tracker funds proving popular.

Figures from the Investment Association, the trade body representing the UK’s investment managers, show fixed income was the best-selling asset class in April, with inflows of £679m, while tracker funds continued their positive running attracting £454m.

In contrast, higher risk equity funds saw net outflows of £635m, with notable outflows in European, Japanese and UK equities of £507m, £428m and £310m respectively.

Jason Hollands, managing director of advice firm Tilney Bestinvest, said uncertainty surrounding the outcome of the EU referendum could be contributing to investors’ more cautious stance.

He said: “Some of the risk averse behaviour may be down to the diet of apocalyptic rhetoric about Brexit being dished out on a daily basis which is clearly spooking retail investors, driving them out of risk assets including UK equities and property funds.

“Ironically however, in performance terms, equities had a decent April, and in May the main IA UK equity sectors have performed better than most.”

Investor appetite for fixed income, tracker and targeted absolute return funds meant total fund sales surpassed £1bn for the first time in 2016.

“Following the slow start in January, the industry has now seen three consecutive months of stronger net retail sales,” said Guy Sears, interim chief executive of the Investment Association.

The IA’s statistics now include sales of funds domiciled overseas instead of only funds domiciled in the UK to “reflect the international offering of the asset management industry”.

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.

ISAs: your back-to-basics guide for 2018/19

Here’s everything you need to know to make the most of your unused ISA allowance ahead of the 5 April deadli...

A guide to Sharia savings accounts

A number of Sharia savings products have upped their game in recent months, beating more familiar competitors ...

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

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.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

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...

Money Tips of the Week

  • RT @YourMoneyUK: Government plans cut to minimum shared ownership stake https://t.co/Sqsh6S0Tm0
  • RT @WeareJust_PR: “Families tend not to talk about money and death. But if we don’t talk about these themes it becomes very hard to make pr…
  • RT @RoyalLondon: Voluntary NI contributions to state pensions have risen - @stevewebb1 hails this as “great news that the message is gettin…

Read previous post:
People still in the dark over pension freedoms…14 months on

Three quarters of people don’t understand the pension freedom reforms more than a year after they were introduced, according to...

Close