UK investors removed a net £136m from funds in May, with UK equities losing a record £1.8bn, according to data from the Investment Association.
The outflow follows months of inflows in March and April as investors added to ISAs before the end of the tax year. Despite the overall loss, index trackers continued to grow with equity trackers ballooning £1.2bn and bond trackers growing £815m.
Losses in UK equities follow the trend of the past two years, with the sector experiencing a £13.6bn drop in 2023 and a £12bn drop in 2022. UK gilts, however, stayed in the green for May, drawing in £354m. Fixed income in general dropped £318m.
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Miranda Seath, director of market insight and fund sectors at the Investment Association, said: “Despite net retail sales returning to negative territory in May, monthly outflows of…
