UK equity funds experienced their second largest weekly outflows in a decade as the uncertainty surrounding the outcome of a potential Brexit vote weighs on investors’ minds.
UK equity funds saw outflows of $1.1bn in the week ended 15 June, the second worst in the last decade in absolute terms, according to the data from Bank of America Merrill Lynch.
European equity funds also experienced 19 straight weeks of outflows, with the last week totaling $4.7bn.
June has been all about the “risk-off Brexit trade” according to BAML, with investors long in gold, US bonds and yen and short oil, UK/EU equity and sterling.
The UK was the worst performing market in the MSCI ACWI index for the month to date, at -6.6 per cent.
Economic uncertainty has seen a rotation out of equity funds and high yield bond funds, which lost $3.6bn and $3.2bn respectively to outflows, into precious metal funds, which saw inflows of $1.1bn.