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. 

Sponsors

Portfolio Adviser: Guide to Europe

Portfolio Adviser: Guide to Europe

After a politically turbulent time in 2016, Europe has been under scrutiny with several nations going to the polls.The question asked, would investors be right to...

Kames Income Hub

home_research_centre

Vincent McEntegart, manager of the Kames Diversified Monthly Income Fund, explains how he aims to deliver a stable and sustainable income of 5% p.a.*, paid monthly, by investing in a range of asset classes

Square Mile Research

Premier Multi Asset Global Growth - Alex Farlow
Premier Multi Asset Global...

Talking Factsheets is a video service for users...

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Geoff Candy

Group digital editor

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.

Profiles

Viewpoint

Investment Strategy

Feature

Tweets

Events

PA Edinburgh 2017
PA Edinburgh 2017

Thursday 7 September
Balmoral Hotel, Edinburgh

PA Alternatives 2017
PA Alternatives 2017

Tuesday 12 September
Radisson Blu Edwardian Bloomsbury Street Hotel

PA Dublin October 2017
PA Dublin October 2017

Tuesday 10 October
Westbury Hotel, Dublin

PA US 2017
PA US 2017

Tuesday 17 October
Furniture Makers' Hall

Sponsored Content

OTHER STORIES FROM LAST WORD...