UK investors show faith in equities

UK investors regained some faith in equities in November last year as 10 months of outflows came to an end, according to new figures from the UK-based Investment Association.

Total sales of equity funds came in at £583 mn ($703 mn) in November, the first inflow recorded in 2016, up from an outflow of £960 mn in October. UK equity funds also recorded their first positive monthly flow of the year, with inflows of £114 mn, up from outflows of £888 mn the month before.   

‘UK investors reversed the trend of 2016 and bought into equity funds in November, following 10 consecutive months of outflows from equity products,’ observes Alastair Wainwright, a fund market specialist with the Investment Association. ‘Global funds continued to be most popular among equity investors but UK equity funds also recorded their first positive monthly flow of the year.’

Chris Cummings, chief executive of the Investment Association, says: ‘UK investors were tempted back into equity funds in November, when we saw positive flows into UK equities for the first time in 2016. This helped November to record the second-highest monthly inflow of the year.’

Putting this into political context, he adds: ‘The long period of uncertainty global markets have faced through the US election cycle also came to an end with Donald Trump’s unexpected win.’