Shakespeare Martineau: Diversification key to profiting from post-Brexit bearishness

Investors pulling out of UK equities and property

The bearish sentiment towards property and UK equities among investors since June's Brexit vote is providing UK fund managers with an opportunity to attract additional inflows by increasing diversification and spreading risk, says Kavita Patel, partner and head of investment funds at law firm Shakespeare Martineau.

Despite news that equity fund redemptions rose sharply in July, some fund managers are continuing to report healthy inflows and many are busy adjusting their portfolios to boost their attractiveness further. Fresh data from Morningstar has revealed that equity fund redemptions rose sharply in July as investors withdrew £5.7bn from UK equity funds and £470m from property funds. While this level of redemptions was the highest ever seen, the actual value of funds currently under management is also at a record level, so the true picture in terms of outflow is not as bad as it might first...