UK retail investors continued to withdraw money from equity funds in September and displayed increased caution over bond portfolios, with mixed asset products the apparent beneficiary.
September’s £664m in net retail sales did mark a further reversal of the post-Brexit vote panic which saw funds suffer £4.5bn of net outflows over June and July, according to figures from the Investment Association. But the figure fell well short of the £1.7bn of net inflows witnessed in August.
Equity funds saw £333m in outflows, its ninth consecutive month of redemptions, despite the Global sector being the most popular peer group in September with £393m in net inflows.
Mixed asset proved the best-selling asset class for September, with a net inflow of £374m, while money market funds brought in some £297m overall, emphasising that the caution of recent months has continued into the autumn.
But with bond yields remaining near record lows last month, interest in fixed income offerings appeared to cool. Bonds proved the most popular asset class in August, with net sales of £1.2bn, but the funds attracted just £100m of net inflows for September.
Alastair Wainwright, fund market specialist at the Investment Association, which released the latest figures, said: “Caution was again evident in September as investors moved out of equity funds in favour of arguably less risky mixed asset and money market funds.”
The Property sector, home to a number of funds which reopened last month having been closed since suffering mass redemptions over the summer, saw interest return with £117m in net flows.
Tracker funds, meanwhile, continued to attract money, taking in £351m to follow the £623m in flows seen in August.