Savers look to diversify risk in March

SavingsUK savers looked to diversify risk throughout March, with global equity and mixed asset funds benefitting in the first quarter of the year.

Global was the best-selling sector, seeing £691 million (€805 million) in net retail sales – the largest inflow into the sector for March on record, according to data published by the Investment Association, the UK’s asset management trade body.

Fixed income was the best-selling asset class, experiencing inflows of £810 million, the highest since January 2018. Money market was the second best-selling asset type, seeing net retail sales of £127 million.

Although the year got off to a rocky start, with £2.4 billion of outflows in the first quarter, funds under management increased to £1.2 trillion, buoyed by fund performance.

“Ongoing economic and Brexit uncertainty continued to impact Europe and UK equity funds,” said IA chief executive Chris Cummings. Savers pulled out £1.4 billion and £816 million from both respectively, according to the figures.

The UK all companies sector saw investors pulling out £365 million, according to the IA, marking two years of continuous outflows.

“The UK continues to be sharply out of favour, while global funds are enjoying a long spell in the limelight,” said Laith Khalaf, senior analyst at financial service company Hargreaves Lansdown.

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