Outflows slow to £137m in October as UK investors gravitate towards safer assets
UK equity funds continued to experience the heaviest outflows of any region, with investors redeeming £1.3bn over the month.
Retail investors pulled £137m out of funds in October, down from £1.5bn in September and £3.9bn during the same month last year.
Equity funds and fixed income funds saw outflows of £376m and £429m, respectively, while mixed asset funds posted outflows of £3m, following September's £781m inflows.
However, the bulk of outflows were offset by £938m of inflows into money market funds and £33m into property funds, the IA found.
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Tracker funds suffered their worst month on record in October, with net retail outflows of £331m, while UK retail investors redeemed £530m from their responsible investment fund holdings.
The worst-selling Investment Association sector over the month was UK All Companies, which experienced outflows of £939m, as Short Term Money Market topped the sales charts with inflows of £650m.
Volatility Managed became the second best-selling sector with net retail sales of £268m, followed by £229m for the Japan sector, £221m for the Specialist Bond sector and £206m for the UK Gilts sector.
Chris Cummings, CEO of the Investment Association, said the environment remained «challenging» for investors despite the slowdown in outflows.
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«Short Term Money Market was the best-selling sector, with investors parking their savings and taking a ‘wait-and-see' approach as the cost-of-living crisis continues the impact the ability to invest,» he said.
«We may see savers re-allocate their funds once market conditions have calmed down. However, in the
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