UK fund flows turn positive in August after post-Brexit slump

Investors favouring fixed income

UK retail fund sales turned positive in August for the first time since April, bringing in £1.7bn, although equity funds continued to see redemptions as investors flocked to fixed income.

According to the Investment Association, total UK net retail sales came in at £1.7bn, compared to £1bn outflows seen in July in the aftermath of the Brexit vote. This was primarily driven by sales of £1.2bn into fixed income funds, while targeted absolute return funds also saw inflows of £480m, marking the the eighth month of the sector being the bestseller in the past 12 months (see table, below). However, equity funds continued to see outflows, with investors pulling £629m in August, driven by outflows of £247m from the Specialist sector, as well as UK redemptions of £162m and £297m...