Investors abandon US and Asian equities for UK focus

UK investors reverted to a home bias in March as they piled out of Asian and US funds and into UK equities.

The latest IMA fund sale figures found that the IMA UK All Companies sector was the highest selling sector in March, with net sales of £371m.

It was the fourth consecutive month that UK equity funds were the best selling equity funds, following a substantial period in which IMA UK All Companies funds were unloved by investors.

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The inflows into the UK came at the expense of US funds, with the IMA North America sector seeing the most outflows of any sector with £255m withdrawn.

The Asian sectors also suffered, with investors withdrawing £260m in total from Asia-focused IMA sectors.

March’s sales figures also showed that the resurgence interest in property funds is gaining pace, as the sector was the second highest selling in the IMA universe with £298m of net sales.

The £298m of sales represented the best month for property fund sales since January 2010.