Flows into UK-based funds slumped to their second-lowest level in three years in August. Across all asset types, inflows were down, or there were outright outflows – overall UK investors added just £640m to their holdings, well below the long-run £2.4bn net monthly inflow.
Here are some of the key highlights from this month’s FFI:
- Investors added just £640m to all types of UK fund in August, less than one third of the monthly average inflow, despite very strong overall trading volumes
- Only December 2018 has seen lower fund inflows in the last three years
- Equity funds were hardest hit, with UK-equity funds accounting for three-fifths of outflows
- Announcement of Parliamentary suspension caused a spike in outflows from UK-equity funds
- Real-estate funds saw second-largest outflows on record
- Fixed income funds saw inflows, but they were much lower than of late as tumbling bond yields reduced the attraction of bonds as a safe haven
- Flows offshore continued unabated
To read further insights from the FFI, please click through this link
