Fixed income and equities have switched positions as the best and worst asset classes from April to May, according to statistics from The Investment Association.
Fixed income funds had been the best-selling asset class in April, but a drastic turn around caused them to become the worst-selling in May. There was £162m of net outflows in May, compared to £329m of net inflows in April.
Meanwhile, equities shifted from being the worst selling asset class in April to the best selling in May. In April, there were £92m worth of net outflows from the asset class, while in May there was £802m worth of net inflows, the highest since December 2014.
Most of this was driven by the UK equity income sector, which had net retail sales of £419m.
Daniel Godfrey, chief executive of the Investment Association, said: “With the uncertainty of the election over, investors seem to be taking a more positive view on UK equities.
“However, UK equity income funds continue to be the driver of inflows, highlighting an ongoing preoccupation with yield among investors in a low interest rate environment.”
