Investors pull £1bn from UK funds in May
Investors 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the outflows from UK All Companies sector were higher than the aftermath of Brexit, with almost £1bn of investor money withdrawn from these funds in May. The UK Equity Income sector was also hit with redemptions, as almost £300m was withdrawn in the month alone.
“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.”