Equity strategies continued a trend of outflows in July, losing more than £2.6 billion, but the rate has slowed compared with those witnessed in May and June, according to research by data provider Morningstar.
Four of the five worst-performing sectors belonged to equities, with the US large-cap blend sector recording outflows of £661 million in July. The UK large-cap sector was the second worst performer with an outflow of £591 million, while Europe ex-UK recorded a loss of £373 million in third. Global large-cap growth also recorded £290 million in outflows.
UK equity strategies have now seen £10.9 billion in outflows over the last year, compared with £5 billion in outflows for US large-cap blend and Europe ex-UK.
Fixed income strategies continued their strong run with a net inflow of £739 million during the month, including the best performing sector global corporate, which attracted £280 million in inflows.
Money market strategies saw a bumper month, with inflows of more than £1.2 billion – the bulk of its inflows £1.4 billion over the past 12 months – and assets rising by £15 billion in July.
Meanwhile, index strategies recorded a net inflow of £130 million – taking the one-year total to £2.7 billion–compared with an outflow of around £1.2bn for non-indexed funds.
Elsewhere, sustainable strategies recorded £251 million in net inflows, contributing to one-year inflows of £29.2 billion. Non-sustainable strategies saw outflows of £1.5 billion, with £36.2 billion exiting these strategies over the year.
On the asset manager front, BlackRock experienced its largest monthly net outflow since 2018 as £1.6 billion, including a £90 million outflow from BlackRock European Dynamic, as well as large outflows from its BlackRock ACS World ESG Equity and BlackRock ACS World ex UK Equity passive strategies.
And consistent inflows for Schroders over the past 12 months were disrupted by its largest net outflow for two years, with £270 million exiting the asset manager, including a redemption of £73 million from the Schroders Emerging Markets strategy.
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