Investors continue to shun UK and European equity funds in favour of global exposure as economic and Brexit uncertainties continue to hold sway.

More than £2.4bn has been pulled out of the funds space during the first three months of the year according to data from the Investment Association, the trade body that represents UK investment managers.

Both retail investors and institutions have been net sellers with broader opportunities being sought out.

UK equity funds have now experienced 23 consecutive months of outflows, totalling £8.6bn according to stockbroker Numis.

Funds in the UK All Companies sector which saw large amounts of money taken out by investors in March included £158m of outflows from Woodford Equity Income (BLRZQ73) and £121m from Invesco High Income (BJ04HQ9).

‘Savers have turned towards global equity funds and mixed-asset funds in the first quarter, whilst fixed income funds have seen a return to inflows,’ says Chris Cummings, chief executive of the Investment Association.

Fixed income assets were the best-selling asset class during March with £810m in net retail sales, according to the report, as UK investors reduced their appetite for risk. There was also an escalation of investors moving into cash, with money market products the second best-selling asset class in March, with net retail sales of £127m.

This is despite a growing number of UK fund managers talking up the relative attractions of UK shares including Alex Wright, Fidelity’s highly rated contrarian manager.

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