UK funds feel the Brexit effect, but FX remains best barometer
By International Adviser, 16 Jun 16
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UK funds feeling the Brexit effect – Lipper
An analysis of data of the U.K.’s Investment Association (IA) classifications by Thomson Reuters Lipper shows that total assets of the funds in all IA classifications fell 18%, with estimated net outflows of £38bn for the 12 months to May 31, 2016.
According to Lipper’s research, January 2016 proved the worst month overall, with nearly £16bn of net outflows that month alone.
The largest IA sector (UK All Companies), with some 12% of all IA assets, has suffered a yearly net outflow of £9.2bn, the firm said. In the past 12 months it has experienced only a single positive month of flows (July 2015).
The IA Sterling Strategic Bond sector has been worst hit as a proportion of its overall size in the U.K. market. With 4% of total assets overall, it has suffered nearly £12bn of net outflows to the end of May 2016, without a single monthly net inflow for the year.
Only four of the IA sectors have experienced more than £1 billion of net inflows in the 12 months to the end of May: Property, Global Equity Income, Global Bonds, and Targeted Absolute Return. The latter sector has been the standout success story for the U.K. market for the last 12 months. It has collected nearly £10 billion of net inflows. This is despite the corresponding average fund return of the sector being a negative 0.6% over the same period.
Tags: Axa | Brexit | Hargreaves Lansdown | Lipper | Neil Woodford
