View more on these topics

UK equity fund outflows continue

UK equity finds saw net retail outflows of £142m in April, according to latest figures from the Investment Association.

Overall, retail investors put £2.4bn into investment funds in April, with £931m going into Isa accounts.

AJ Bell personal finance analyst Laura Suter says since Brexit £7.9bn has poured out of UK stock market funds, with £1.8bn coming from UK Equity Income funds, and £5.8bn from UK All Companies funds.

Suter says: “Investors tentatively moved back into the UK Equity Income sector in April, but UK stock market funds overall still saw outflows of £142m in the period.”

She adds: “However, investors are getting more bullish and returned to equity markets in force, committing £1.6bn during the period. Fears of escalating trade wars, ongoing tensions with North Korea and rising interest rates have not deterred investors from the US, or global markets, which together saw more than £1bn of the equity inflows.”

IA fund market specialist Alastair Wainwright says investors in UK equities were rewarded with good performance in April, with the FTSE 100 returning 6.8 per cent and FTSE All Share returning 6.4 per cent.

Wainwright says: “This was helped in no small part by an increase in the price of oil which boosted the energy sector. The sector average return for the UK Equity Income sector, according to Morningstar, was 6.3% with the best performing fund in the sector making 9.6% through April.”

The IA figures also show £256m was invested into funds through Isa wrappers between 1 April and 5 April and £675m in the rest of the month.

IA chief executive Chris Cummings says: “After the last minute rush at the beginning of April, savers were out in force for the new tax year.”


Richard Buxton: For how long will UK equities remain this unloved?

Despite increasing numbers of corporate activists on company share registers, UK equities remain cheap relative to historic levels News from the Bank of America Merrill Lynch global fund manager survey that global investors have never been so underweight UK equities comes as little surprise to this investor, given that the UK All Companies sector has […]


Morningstar downgrades Woodford’s equity income fund

In a new blow for Neil Woodford, Morningstar has downgraded his signature £6bn equity income fund from silver to bronze following concerns about its positioning. Morningstar senior research analyst Peter Brunt says that “extreme positioning” in less-liquid parts of the market have made the fund “less nimble” than others. He says: “While Neil Woodford is […]


Intrinsic chief: Why I support contingent charging

A ban would worsen customer outcomes in most cases The report earlier this year from the work and pensions select committee on British Steel Pension Schemes is not ambiguous when it comes to contingent charging. It wants a ban. The report offered several examples of poor behaviour, which have no place in our modern profession and only serve […]


Alternative assets: what are they and why invest in them?

Michael Howard, Head of Alternative Investments at Prudential Portfolio Management Group (PPMG), analyses how alternative assets can benefit multi-asset portfolios. As yields have compressed and forward-looking return expectations have fallen in the past few years, investors have sought alternatives to traditional asset classes to supplement their income and boost their total return. Please remember that […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm