UK investors favoured fixed income funds ahead of the EU referendum
The Investment Association's monthly statistics of UK investor behaviour in May 2016 show:
• Funds under management fell 2.8% in the twelve months to the end of May
• Fixed Income funds the most popular asset class with sales of £315 million
• Retail investors reduced holdings in equity and property funds
• Tracker funds saw net retail sales of £484 million
Guy Sears, Interim Chief Executive of the Investment Association, said:
"Fixed Income funds were the most popular amongst UK investors in May as they looked to lower their risk exposure ahead of the EU referendum. It was by far the best-selling asset class as a whole, as well as taking up three of the five top selling sectors. The sterling corporate bond sector attracted the highest net retail sales while sterling strategic bonds and gilts were fourth and fifth respectively.
"Funds under management fell by 2.8% in the twelve months to the end of May in spite of challenging markets. The industry remains in a strong position and continues to offer a wide range of solutions for investors through all market conditions."
