The financial sector was one of the strongest performers last month, despite some asset managers choosing to slim down their exposure after the Brexit vote.
Figures from the Wealth Club showed the banking sector jumped more than 12 per cent last month and was just pipped to the top spot by the construction and materials sector.
But the managers of the £287m BlackRock UK Income Fund shed a large portion of the fund’s exposure to the financial sector following the EU referendum vote.
Thesis Asset Management has also cut down weightings to financials because of the lower-yield environment and uncertainty around the financial services sector.
Ben Yearsley, investment director at the Wealth Club, said the continuation of quantitative easing was the driving force behind these moves, with index-linked gilts moving particularly strongly after Bank of England governor Mark Carney said inflation was a potential by-product of the recent rate cut.
UK Smaller Companies, one of the perceived Brexit losers, also had a decent rebound in August, according to the investment boss, while the Japanese Smaller Company sector was the only loser after failing to make a return.