IA chief executive Chris Cummings explained: “In the three month period around the Brexit referendum – May, June and July 2016 – UK based retail investors reduced their allocation to funds by £3.8bn. However, since those outflows more than £10bn has been invested by retail customers in UK Authorised funds.”
Despite the reflation trade mania, fixed income was still far ahead of equities with net retail sales of £766m (versus equity funds’ net flows of £1m), making it the second most popular asset class after mixed assets.
Accordingly, the Strategic Bond sector was the second highest selling category at £228m.
Global equity funds racked up the highest net retail sales by a long shot at £257m and was the only region to generate positive average net retail sales for the previous 12 months.
Asian and UK equity funds were the only two regions to suffer redemptions over February, with UK products losing £350m to Asian funds’ £95m.
