Investors sell equities as clouds gather
7th September 2018 11:40
by Holly Black from interactive investor
The FTSE 100 has just fallen below 7,300 for the first time since April, and the UK remains firmly out of favour with £3.5 billion of outflows this year, reports Holly Black.
Nervous investors continue to pile out of equities, latest figures from trade body the Investment Association reveal.
While some £977 million net was invested into funds in July, those investing in Europe, North America and UK equities saw net outflows totalling £727 million in the month.
Diversified remits seem to be more popular among investors, with global funds the best-selling sector of the month with net sales of £397 million. Just two other regions, Asia and Japan, saw positive net retail sales in the month.
Meanwhile, the UK remains firmly out of favour, with the sector suffering outflows of £3.5 billion so far this year. Investors also pulled £256 million out of North America funds in July, perhaps looking to pocket profits as the US stockmarket bull run continued, breaking previous records.
Despite selling of North American equities, US funds were among the top performing funds last month. Investors now hold a record £1.3 trillion in funds, but are clearly exercising caution with so much uncertainty in global markets. Some £549 million was invested in mixed asset funds in July, and £177 million in money market funds. Property and targeted absolute return funds also saw inflows from investors seeking ways to diversify their risk.
Chris Cummings, chief executive of the Investment Association, says:
"Amid trade tensions, the story remains one of equity outflows and waning risk appetite. Fixed income and mixed asset funds attracted strong inflows, as did volatility-managed firms."
Tracker funds continue to grow in popularity, seeing inflows of £640 million in the month, which helped their overall share of industry funds under management climb to 15.2 per cent. Nervous investors might like to check out these five funds to weather any storm.
• Five trusty favourite funds for rain and shine
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
This article was originally published in our sister magazine Money Observer, which ceased publication in August 2020.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.