Retail investors return to markets in November but UK remains unloved

investmentweek.co.uk:

Money market funds suffered a reversal of fortunes, slipping to outflows in November as a net £319m left the asset class, the worst performing for the month.

According to flows data from the Investment Association, investors pumped £991m into equity funds over the course of the month, a shift in tone from October's £488m outflows.

Within the asset class, North America enjoyed the greatest regional sentiment boost, drawing £115m from investors, followed by Japan's £47m, with the remaining regions all suffering outflows.

Money market funds enjoy 'best year on record' with £4.4bn inflows

Europe (£305m) and Global (£314m) funds took heavy losses, but the UK remains the outcast, suffering a further £819m of outflows in a single month.

By far the most popular way to access investments over November, tracker funds enjoyed their highest inflows since April 2021, bringing in £2.7bn and bumping their overall share of industry funds under management to 22.2%.

On a wider scale, industry FUM remains flat year-on-year at £1.39trn, although retail investors appear more bullish than institutional, adding £457m in the month, compared to institutional's net £5.8bn outflows.

While money market funds enjoyed their best year on record in 2023, November was not a bright spot, with the asset class slipping to outflows as a net £319m was withdrawn, leaving it the worst performing asset class for the month.

Although equities enjoyed the greatest flows on an asset class basis, by IA sector, UK Gilts was the clear winner, bringing in net £548m for the month, followed by Infrastructure, which took less than half that figure (£241m), and High Yield Bond enjoyed £190m net inflows.

The worst-selling IA sector for November was Mixed Investment 20-60%