Update
The Investment Association (IA) has reported that UK savers took £4.5bn out of funds in June, the highest monthly outflow of the year so far and the second-highest on record, reflecting intensifying economic uncertainty.
Other key findings for June 2022 included:
• Equity funds saw outflows of £2.3bn, largely from globally diversified equity funds, which experienced outflows of £1.3bn, marking the biggest outflow since the aftermath of the 2016 Brexit referendum vote
• Mixed Asset funds also saw outflows of £268m, while Tracker funds saw net retail outflows of £41m, only their second outflow in a decade, reflecting ongoing uncertainty in market conditions
• Volatility Managed was the bestselling IA sector, with net retail inflows of £248m, as investors looked to investment managers to help them manage the volatility of their returns. Global Equity Income was the second-highest-selling sector with net retail sales of £189m
• Responsible investment funds remained in inflow, with net retail sales of £71m, down from £1.6bn in May.
IA chief executive Chris Cummings said ‘Savers are pre-empting slowing economic growth and preparing for further interest rate rises as we enter new territory for markets. Higher rates mean a weaker performance outlook for the high-growth companies that helped to fuel the bull market of the last decade. June’s equity fund outflows indicate that investors are looking at ways to better balance their savings.
‘All major asset classes experienced outflows in June,’ he noted, ‘as investors continued to adjust to the end of the low-interest rate era. Investors have turned to lower-risk asset classes as a bulwark against rising market uncertainty, and UK Gilts sold well.’
Link: https://www.theia.org/media/press-releases/funds-hit-ps45-billion-outflows-amidst-intensifying-economic-uncertainty