Industry assets reach record high as outflows slow
The Investment Association's monthly statistics of UK investor behaviour in July 2016 show:
- Funds under management at record high of £989 billion
- Funds under management rose by £40 billion in July
- Total sales (retail and institutional combined) were -£506 million
- Fixed income funds were popular in July with net retail sales of £1.1 billion
- Equity funds saw an outflow of £2.2 billion
- Property funds experienced an outflow of £792 million
Guy Sears, Interim Chief Executive of the Investment Association, said:
"Funds under management of UK authorised funds increased by £40 billion in July to reach a record high of £989 billion, a 4% month-on-month increase.
"Although global equity markets initially fell following the EU referendum announcement, they recovered through July to produce positive returns. Bonds rallied and yields fell to record lows as investors sought safe assets and the market expected a rate cut from the Bank of England.
"Net retail sales were negative again in July with an outflow of £1 billion (0.11% of total assets). However, this was markedly lower than the outflow experienced in June. UK retail investors remained cautious as they sold out of equity and property funds, favouring fixed income, mixed-asset and absolute return strategies."
