Mixed assets, money market win as investor caution ratchets up

Added 1st November 2016

Money market and mixed asset funds were the flavour of the month as UK investors continued to head for the hills in September, the latest data from the Investment Association showed.

Mixed assets, money market win as investor caution ratchets up

Mixed-asset funds were the best-selling asset class last month, reporting net inflows of £374m. Hot on its heels were money market funds that pulled in £297m, their second strongest month on record. The month following the EU referendum was the only one in which more money has flowed into money market funds.

Of the flows, Alastair Wainwright, fund market specialist at the IA said that caution was again evident in September.

“Although 40-85% Shares was the most popular mixed asset sector in absolute terms, it is the 0-35% shares sector that is experiencing the greatest growth across all sectors. Looking at net retail sales relative to the size of the sector we see the 0-35% shares sector experienced net retail sales growth of 3.8% and 2.7% in August and September respectively,” he added.

The other point to note is that while global funds recorded inflows of £447m during the month, equity funds in total once again saw net outflows, this time of £333m, as they have done every month so far this year.

Property funds, however, saw a return to form with net sales of £117m in September, up sharply from the £1m they recorded in August. However, September’s inflows pale in comparison to the massive outflows the sector has seen year-to-date, including £1.5bn in June, 2016, and £790m in July. 

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Geoff Candy

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Geoff Candy joined Portfolio Adviser as News Editor in May 2014. He has been a financial journalist and broadcaster since 2005 and, in that time has worked in both South Africa and the Netherlands, covering everything from high street retailers and construction companies to mining and insurance.

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