Investors Abandon UK Funds Post Brexit and Miss-out on Gains

Withdrawls of UK equity income funds reached £1 billion in June, the biggest monthly outflows in five years, amid Brexit fears, Morningstar data reveals

Karen Kwok 22 July, 2016 | 4:26PM

UK investors pulled more money out of UK equity income funds in June than in any month since 2012, as fears about the Brexit vote grew – and then investors subsequently reacted to the result.

Data from Morningstar Direct showed outflows from UK equity income funds in Morningstar Categories reached £1 billion in June, compared with £340 million in May. These boosted outflows of UK equity income funds for the first six months of this year totalling more than £1.3 billion outflows.

It is perhaps not surprising to see such a high volume of outflows in UK equity income funds, as the asset class have lagged the FTSE All Share in the first half of 2016, according to a research note issued by Morningstar senior fund analyst Peter Brunt.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Artemis Income R Inc2.14 GBP0.83
Invesco UK Eq High Inc UK Inc299.45 GBP0.54
Royal London UK Equity Income A681.73 GBP0.68

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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