UK investor faith in equities grows, bringing 10 months of outflows to an end

 
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Investment Association: "UK investors were tempted back into equity funds in November" (Source: Getty)

UK investors regained some faith in equities in November as 10 months of outflows came to an end, new figures out today show.

Total funds under management totalled £1 trillion during the month, with net retail fund sales of £1.5bn, up from £595m in October.

Total sales of equity funds came in at £583m, the first inflow recorded in 2016, up from an outflow of £960m in October.

Read more: Investor confidence in UK shares falls amid Brexit "nervousness"

UK equity funds also recorded their first positive monthly flow of the year, with inflows of £114m, up from outflows of £888m the month before.

“UK investors were tempted back into equity funds in November,” said Investment Association chief executive Chris Cummings.

“We saw positive flows into UK equities for the first time in 2016, which helped November to record the second highest monthly inflow of the year.

“The long period of uncertainty global markets have faced through the US election cycle also came to end with Donald Trump's unexpected win.”

Read more: Investor confidence in UK bounces back to 2016 high after Brexit vote fall

Alastair Wainwright, a fund market specialist, said:

UK investors reversed the trend of 2016 and bought into equity funds in November, following 10 consecutive months of outflows from equity products.

Global funds continued to be most popular amongst equity investors, however, UK equity funds also recorded their first positive monthly flow of the year.

He added: “Investor sentiment toward UK equities has a significant impact on overall sales figures as UK equity funds account for 22 per cent of total industry funds under management and 40 per cent of equity funds under management.”

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