UK equity funds remain deeply out of favour with investors, who pulled £1.2bn out of the asset class in July, spooked by the rising prospect of a no-deal Brexit, the change in government and weak sterling. The sell-off was the biggest since May 2018, according to statistics from the Investment Association, the trade body that represents UK investment managers.
Most of the money withdrawn was from UK All Companies funds, the worst-selling sector in July with outflows of £734m. Private investors have now taken more than £13bn out of UK funds since the referendum vote in 2016. As of July, the funds industry had a total of £1.3tn under management, with £242bn held in UK equity funds, according to the IA, including UK smaller companies and funds of funds.