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UK fund outflows hit post-Brexit peak as markets dived

Figures from asset management trade body the Investment Association show fixed income outflows of £1.2 billion as again leading the rout

UK fund outflows hit post-Brexit peak as markets dived

Clients pulled a net £2.1 billion from UK funds in November in worst month of outflows since the Brexit referendum in 2016.

The Investment Association (IA) data showed bond outflows of £1.2 billion leading the rout versus £467 million withdrawn from equity funds.

UK and European equity funds reported redemptions of £319 million and £426 million, respectively, bringing the amount pulled from UK equity mandates since the Brexit vote to more than £11 billion.

The worst selling sector in November was Targeted Absolute Return, however, with outflows of £756 million.

IA chief executive Chris Cummings said: ‘A combination of international trade tensions, ongoing Brexit uncertainty, and the market volatility seen from October onwards, have clearly dented confidence.'

The only two asset classes to see positive flows were Mixed Asset and Property, which gained £350 million and £19 million, respectively.

Mixed Investment 40-85% Shares was the best-selling sector, attracting £216 million, while Global, North America and Japan funds sold £140 million, £88 million and £80 million, respectively.

Exchange trade funds also saw an uptick in inflows to £777 million from £565 million in October, helping assets under management rise to £188 billion – 15.6% of the industry total, up from 14.5% the month before.

Ethical funds also continued to defy market uncertainty, gaining £83 million in inflows for the month.

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