UK Equity Income funds see largest inflows in three years

Laura Suter
4 July 2019

·         UK Equity Income funds saw their largest inflows in more than three years 
·         With £533m of inflows, UK Equity funds finally return to favour
·         Absolute Return funds see another £500m outflows

Laura Suter, personal finance analyst at investment platform AJ Bell, comments on the latest Investment Association figures:

“Investors have finally moved back into their home market. After two years of consistent outflows from UK equity funds investors committed a hefty amount of their money to the market in May, with inflows of £533m. What’s more, UK Equity Income funds saw their largest inflows in more than three years, since before the Brexit referendum, with £316m of inflows.

“At the same time, investors have shifted away from Global equity markets, as inflows almost halved in May compared to the previous month. It still remains the most loved sector, with £4.5bn of inflows over the past year. 

“There was no turnaround for Absolute Return funds, which continued to haemorrhage assets, with another £500m pulled from the funds in May. It means that over the past year more than £5bn has been pulled from the funds, after lacklustre performance from some of the giants in the sector hit investor confidence.

“Active fund managers continue to feel the heat from the rise of passives, with tracker funds seeing their highest inflows, at £2.3 billion for the month. At the same time total funds under management in the industry flatlined, meaning that tracker funds now make up a sixth of all funds.”

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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