Industry assets at 12-month high despite June outflows
The Investment Association's monthly statistics of UK investor behaviour in June 2016 show:
- Funds under management rose to £948 billion at the end of June
- Retail investors redeemed £3.5 billion (-0.37%) from funds in June
- Equity funds accounted for the majority of the outflow with £2.8 billion (-0.51%) redeemed
- Property funds experienced an outflow of £1.4 billion (-5.7%)
- Mixed Asset funds also experienced a small outflow of £191 million (-0.12%)
- Fixed income funds received a net retail inflow of £258 million (+0.14%), the fourth consecutive month of positive retail flows
Guy Sears, Interim Chief Executive of the Investment Association, said:
"The retail outflow in June occurred in the context of record levels of funds under management, and represented just 0.37% of total assets during a period of intense market volatility. Clearly, Brexit has been unsettling, with property and equity funds particularly affected following earlier outflows during 2016. At the same time, flows were positive into fixed income and targeted absolute return sectors as investors sought safer harbours.
"In the first six months of this year, industry funds under management grew by £22.6 billion. Fixed income funds saw the largest growth in funds under management in the year to the end of June with £13 billion. Funds under management in mixed asset funds increased by £5.2bn and equity funds grew by £1.4bn."
