Brexit chaos continued to affect fund sales in February as net outflows hit £156m, compared to inflows of £1bn the previous year.
Investors have now sold a total of £11.5bn of UK funds since the 2016 referendum, as February marked the fifth consecutive month of outflows, the latest data from the Investment Association shows.
February’s outflows were lower than the previous month due to an ISA season boost, but investors continue to avoid European and UK equity funds which saw outflows of £453m and £236m respectively.
Meanwhile, Global was the best selling sector with net retail sales of £513m.
Investment Association chief executive Chris Cummings said: “Despite a slight improvement in investor confidence, February experienced the fifth consecutive month of retail outflows.
“Savers turned towards Mixed Asset and Global Equity funds to weather the ongoing economic and political uncertainty, giving European and UK equity funds, which saw continued outflows, the cold shoulder.”
Laura Suter, personal finance analyst at investment platform AJ Bell, added: “The UK is not alone, with Europe also being out of favour with investors nervous about the impact of Brexit and slowing European growth…Instead investors are seeking the relative shelter of global equity funds, deferring the decision on asset allocation to fund managers."