More money was pulled from funds distributed in the UK last month than in the past three years, as fear plagued markets following the EU referendum.
Figures from research firm Morningstar show UK-based asset managers were hit by nearly £5bn of outflows in July, which is more than any month recorded since August 2013.
In June, outflows from UK-domiciled funds reached £3.1bn.
Equity funds suffered the lion´s share of the outflows, with data indicating £5.7bn was pulled from the asset class last month.
Property funds were also severely mauled in the aftermath of the Brexit vote, taking second place in terms of outflows, after being hit with redemptions amounting to £438m.
These findings come after a number of large commerical real estate funds were forced to suspend trading when thousands of investors asked to cash-in their investments following the Brexit vote on 23 June.
Columbia Threadneedle was the group worst hit by outflows, as investors pulled £662m from its funds, followed closely behind by Standard Life Investments and M&G.
But Morningstar data for funds distributed in Europe painted a difference picture.
Despite the Brexit vote causing a bout of short-term market volatility and reducing the appetite for equity funds in Europe, Ali Masarwah, EMEA editorial director for Morningstar said outflows from funds investing in UK equities and bonds “remained unspectacular”.
Figures show that overall European investors returned to the fund market with “vigour”, with inflows into allocation, alternative, and fixed-income funds compensating the losses suffered in equity funds.
As a result, total inflows into funds distributed in Europe stood at €15.8bn (£13.4bn), which is the second-highest level of inflows seen in a one-month period this year.
Morningstar indicates Franklin Templeton suffered the worst outflows among European investors, after €1.8bn (£1.5bn) was pulled from the group’s funds.
katherine.denham@ft.com
