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Investors pull £1bn from UK funds in May
Guest Author:
Paloma KubiakInvestors pulled £1.2bn from UK funds in May, a larger amount than in the aftermath of the Brexit vote.
This takes the outflows from UK funds to £9.1bn since the momentous Brexit result two years ago, the figures from The Investment Association reveal.
The Targeted Absolute Return sector was the best-selling in May with £516m net retail sales. This was followed by the Mixed Asset sector with £572m in net retail sales and Fixed Income came third with sales totalling £360m.
Property experienced a net retail outflow of £19m.
In total, funds under management stood at £1.2trn for the month of May, up from £1.1trn recorded in the year earlier.
Laura Suter, personal finance analyst at AJ Bell, said: “A clear sign of investor nerves around Brexit and a sluggish UK economy is shown in the fact that the outflows from UK All Companies sector were higher than the aftermath of Brexit, with almost £1bn of investor money withdrawn from these funds in May. The UK Equity Income sector was also hit with redemptions, as almost £300m was withdrawn in the month alone.
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“Investors are increasingly wary of stock market investments, with the amount invested in equities in all countries falling dramatically between April and May, from £1.6bn to £263m.
“The areas still in favour with investors remain global funds, Japan funds and North American equity funds.”