UK mixed asset funds suffer 'unusually large' outflows in November

investmentweek.co.uk:

By contrast, money market funds had their second positive month and recorded the largest inflows in November, collecting £1.53bn.

The «unusually large» outflows featured a heavy contribution from mixed asset funds with absolute return strategies, Dewi John, LSEG Lipper head of research, UK and Ireland, noted, adding the funds had fallen «out of fashion» since the IA Target Return sector «reversed its popularity a few years back».

LSEG Lipper: October sees biggest UK equity redemptions since Mini Budget

By contrast, money market funds enjoyed their second positive month and recorded the largest inflows of any sector in November, collecting £1.5bn.

John said: «Last month, I pondered whether the move of money market funds flows into positive territory betokened the end of the drip feeding of the asset class back into long-term investment funds following last October's dash to cash.

»It looks like this is indeed the case, with money market funds seeing the strongest inflows. Year-to-date, however, they have still suffered the largest redemptions, at £49bn".

Legal & General was the top-selling fund manager in November, gaining £3.2bn, which was attributed mostly to one money market vehicle — LGIM Sterling Liquidity 1.

Other than money market funds, bond funds were the only other asset class to see inflows over November, gaining £703m. However, the positive flows were brought entirely by passive funds (£1.6bn), while active fixed income funds suffered outflows of £889m.

Fixed income ETF popularity grows as higher yields tempt low-cost investors

Equity funds saw another month of heavy redemptions, at £2.9bn, the asset class' largest outflows since last October, resulting in investors missing the «strong gains» of the FTSE