Fund outflows slow in May but alternatives still out of favour

Equity fund outflows reduced

Net outflows from UK-domiciled funds shrunk to £476m in May - compared to £5.8bn in January - as a result of slowing flows out of equity funds, according to Morningstar Direct.

In a UK Asset Flows Update for May 2019, the data provider said "while the picture has not significantly changed in terms of overall flow direction, the rate of outflows is slowing". Overall, UK-domiciled funds saw net outflows of £476m, bringing total outflows for the past year to an astonishing £42bn. However, the monthly figure was a significant reduction from the £5.8bn in January and £5.4bn in March. Over the past six months, equity and alternatives funds have been responsible for the outflows, but Morningstar Direct said the reduced outflows in May was partly thanks to a smal...