According to data from the Investment Association, there has been a continuation of net outflows from UK funds in recent months, a total of £156M net outflows from UK funds in February (a marked improvement on the previous month’s £593m outflows) with investors seemingly still uncertain of where to place assets.
There is a continued trend of disinvestment from UK exposed funds with UK equity, UK Gilts and UK property all experiencing negative flows. This can, in part, be attributed to increased political and market uncertainty. Investors have been drawn to funds with global exposure and to mixed assets as they seek increased diversification.
One of the worst performing Investment Association sectors has been Targeted Absolute Return with 5 months consistent net outflows. There are several reasons for this, with fund performance and complexity of underlying strategies called into question. This has created demand for sectors such as infrastructure, that typically offer lower correlation to equity markets, and despite other potential sector specific market risks, lower volatility, which has resulted in these funds prevailing as some of the fastest growing in recent months.
If you are interested in investment into infrastructure, please contact your local Business Development Manager or email email@example.com
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