UK investors put £632m in fixed income funds in May
UK funds saw outflows of £1.2bn.
In total, UK retail investors put £356m into funds in May, while institutional clients pulled £2.76bn. In comparison, retail investors withdrew £921m from the funds market in May 2022.
Government Bond was the IA sector that topped the sales tables with £658m inflows, followed by Short Term Money Market (£382m), UK Gilts (£344m), Volatility Managed (£173m) and Global Equity Income (£173m).
The worst-selling IA sector in May was UK All Companies, which experienced outflows of £916m. Global funds were the top selling equity region with net retail inflows of £261m.
Calastone: Investors pull £662m from equities in June
Overall, equity funds saw outflows of £992m. On a geographical basis, global funds saw net retail inflows of £261m, while investors pulled £1.2bn from UK funds and £60m from property funds.
Chris Cummings, chief executive of the Investment Association, said: «Caution was the theme of the month, with government bonds seeing strong inflows. This is not surprising given concern about potential global recession and ongoing conflict in Ukraine.
»Investors continued to diversify their equity portfolios, with continued inflows into global equity funds. However, North America had its first outflow in seven months, possibly reflecting uncertainty ahead of resolution on the debt ceiling. The UK remains unloved amidst persistent outflows."
Tracker funds saw net retail inflows of £1bn in May, lifting their funds under management to £292bn, while responsible investment funds attracted net retail inflows of £26m, with AUM standing at £96bn.
Deep Dive: Governments' 'lack of financial discipline' could upset bonds' positive outlook
Laith Khalaf, head of investment analysis at AJ
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