Lindsell Train faces largest ever outflows in UK Equity fund

At the fund group level Invesco suffers most outflows since Woodford’s exit in 2013

Train

Lindsell Train UK Equity suffered its largest ever monthly outflows in September with investors pulling £374m.

The £6.9bn fund, managed by Nick Train, was among a handful of UK equity products hit by the risk-off environment, Brexit concerns and wider geopolitical concerns, according to Morningstar.

The fund is the largest open-end active UK equity fund in the Morningstar UK flex-cap category, which would have enjoyed net inflows were it not for Train’s strategy.

In the latest fund update for his Finsbury Growth & Income investment trust, Train doubled down on his commitment to so-called growth stocks, which suffered a sell-off in September.

Three of the trust’s largest holdings – Relx, Diageo and Unilever – fell during September with Unilever suffering the biggest setback, down 6%. Those stocks also feature in the top-10 in the Lindsell Train UK Equity Fund with Relx representing 10%, the largest holding, and the other two having a 9.5% weighting.

Majedie UK Equity also suffered its largest ever outflows losing £269m over the month. The £2.8bn fund is now at its lowest size since August 2014 following two years of outflows.

Despite Lindsell Train’s disappointing month, it was still trumped by SLI Gars and Invesco Global Targeted Returns Fund for net outflows and the AI US Large Cap Equity Fund, which bottomed the tables for flows during the month.

SLI Gars suffered net outflows of £392m taking its outflows over the last year to £8.9bn. Investors pulled £386m from Invesco’s absolute return product over the month taking its total losses over the 12-month period to £2.3bn.

Invesco suffers worst month since Woodford exit

Across all UK-domiciled funds, investors pulled £2.1bn in September taking net Q3 outflows to £5.5bn.

At a group level, Invesco suffered its worst ever flows since Neil Woodford announced he was leaving the group in October 2013. In that month, net outflows were £1.2bn.

In September the Henley-based fund group saw £976m in net outflows taking its total redemptions over the last year to £8.1bn.

Over the month the largest net inflows for any single Invesco fund was £9m coming into the £564.9m Invesco UK Enhanced Tracker.

The rotation from growth to value during the month also hit Baillie Gifford, which suffered small, but rare, net outflows of £16.5m. Over the last year it has attracted net flows of £2.3bn.

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