New figures from fund industry body the Investment Association (IA) show that investors pulled another £697m from UK equity funds in August.
In an ongoing negative trend reflecting continuing uncertainty over Brexit, UK-focused equity funds have seen net outflows of more than £3.5bn in the 12 months to 31 August.
Inflows picked up after a no-deal Brexit was averted thanks to an extension to Article 50 in March, with April and May seeing notable inflows.
However, since Boris Johnson became first Conservative Party leader and then prime minister over the summer, outflows have resumed as Johnson has signaled his willingness to contemplate exiting the EU without a deal.
UK property funds have been particularly hard hit, seeing outflows significantly in excess of £1bn in the year to August.
Funds focused on Asia, Japan and Europe all saw outflows too in August, albeit not on the same scale. North America was the only fund region to see inflows during the month.
In a sign that investors are looking to diversify their portfolios amid market volatility, Mixed Asset was the best-selling asset class in August with £706m in net retail sales.
IA chief executive Chris Cummings says: ‘As in previous months, diversification remained savers’ top priority. Mixed-asset funds saw the highest level of inflows since the start of the year, with £706m invested in August. Savers’ appetite for risk-focused solutions also continued to grow, with the IA’s Volatility Managed sector seeing healthy inflows of £230m in August.’
