Investors continue to focus on opportunities overseas as UK equities saw outflows of £290m in July, the latest Investment Association figures show.
Following on from June’s outflows of £1.1bn from UK equities, mirroring the losses of a year ago when the UK voted to leave the European Union, retail investors keep pouring more money into global equity funds.
Global equities saw inflows of £737m in July, marking the bestselling funds by region for the 12th consecutive month, excluding February.
Overall, investor confidence was high over the summer as total net retail sales in July were £3.5bn, making this the highest July net retail inflow on record, the IA notes.
Inflows were also positive across all asset classes except money market funds while fixed income funds topped the July charts with net retail inflows of £1bn.
Fixed income was followed by mixed assets with £958m net retail sales and equity funds with £924m. Multi-asset funds have only seen three monthly outflows in the past five years.
Meanwhile, the IA figures show the share of tracker funds keeps rising and now count for 13.7 per cent of the industry’s funds under management compared with 12.7 per cent in July 2016.
However, net inflows into tracker funds nearly halved from June to July at £555m.