Tracker funds top the sales charts

Laura Suter
1 November 2018

The latest Investment Association figures show where investors allocated money in September:

•        Tracker funds lead with £1bn of net sales
•        UK Equity outflows continue and have hit £10.5bn since Brexit 
•        Global and American funds the biggest winners

Laura Suter, personal finance analyst at investment platform AJ Bell, comments:

“Assets remained flat in September, with the net sales of £642m being largely wiped out by market falls. Tracker funds saw the biggest inflows, with a whopping £1.1bn being invested in them in the month. These tracker inflows are on par with a year ago, despite overall net sales having fallen almost 90%.

“The lack of a deal on Brexit means that investors are still slashing their UK exposure, with another £329m being pulled from UK equity funds in the month. This takes the total net outflows since the referendum vote to £10.5m, with some UK fund managers seeing the size of their funds shrink dramatically during this time.

“Investors are instead focusing on global equity markets and gaining a slice of the growing US economy, with global funds seeing the largest inflows at £236m and North American focused funds attracting £204m of new money. Japanese funds also benefitted, with £129m of new inflows, while most other countries saw outflows.

“Investors nervous of further market falls have been shifting into volatility managed strategies, which aim to give savers a smoother ride. The sector has seen consistent inflows since it was launched in April last year, with almost £2bn of inflows in the past year alone.”

Laura Suter
Personal Finance Analyst
Laura Suter is personal finance analyst at AJ Bell. She is a multi-award winning former financial journalist, having specialised in investments. Laura joined AJ Bell from the Daily Telegraph, where she was investment editor. She has previously worked for adviser publications Money Marketing and Money Management, and has worked for an investment publication in New York. She has a degree in Journalism Studies from University of Sheffield.
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