• UK Equity outflows since Brexit hit £10bn
• 105% difference in the overall amount investors put into funds compared to last year
• Global funds the biggest winners
The latest Investment Association figures show where investors have been allocating money.
Laura Suter, personal finance analyst at investment platform AJ Bell, comments:
“Investors continued to pull money from UK-focused funds in August, with another £423m being withdrawn from the sector. This takes the amount of money pulled from UK equity fund managers to a whopping £10.2bn since the Brexit vote 16 months ago.
“Investors’ fondness for spreading their risk around the globe has continued, with global equity funds netting another £417m of inflows in August, while investors also put £66m into North America funds and £47m into emerging market funds.
“However, it seems worries about the Bank of England raising interest rates has led investors to get jittery about bonds. While UK bonds have seen almost £13bn flow into them in the months since the referendum, August marked net outflows of £259m from UK bond funds.
“Just how nervous investors are feeling is reflected in overall inflows in the month. August saw investors pull £217m from funds, compared to more than £4.5bn of inflows in the same month last year – a reduction of 105%.
“Across the industry the amount UK investors actually hold in funds remained pretty flat compared to the month earlier, as rising markets mean that growth in assets compensated for much of those outflows.”