UK All Companies sector plummets from favour with £500m outflows

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The UK All Companies sector was the worst-selling sector in May with outflows of £532m, plummeting from favour having been the best-selling sector in March with net retail sales of £650m.

The best-selling sector in May 2017 was the Sterling Strategic Bond sector with net retail sales of £392m, monthly statistics from the Investment Association show.

Overall net retail sales were the fourth highest on record at £3.6bn, taking the total amount of new retail money invested in the year to the end of March to £15.3bn. In May last year, the IA sectors saw £180m in net outflows.

Equity was the best-selling asset class in May 2017, attracting net retail inflows of over £1bn. Global equity funds dominated with £699m in net flows and the European equities sectors recorded their largest monthly inflow since September 2015 with net sales of £343m. UK equity funds saw net retail outflows of £479m.

Alastair Wainwright, fund market specialist, says: “For the third month in a row, all asset classes have received positive net retail flows.

“European equities recorded their largest monthly inflow since September 2015 as financial markets on the continent have improved following political and economic developments. Europe ex UK received a net retail inflow of £290m and European Smaller Companies took in £42m. The much smaller Europe inc UK sector took in £11.

Mixed asset and fixed income funds received £986 million and £931 million respectively. Both the Mixed Investment 20-60% Shares and 40-85% Shares sectors received over £200 million in May and the majority of these flows came through fund platforms. Within fixed income, Sterling Strategic Bond was the best-selling sector and all fixed income sectors recorded positive net retail inflows.

Passively managed funds received £997 million of new retail investor money in May. Equity passives took in £542 million, Mixed Asset and Fixed Income passives achieved net retail inflows of £257 million and £122 million respectively.”