European equities were “back in favour” recently with UK investors, latest data from the industry shows.
Trade body The Investment Association (IA) yesterday published fund flows for May that showed European equities recorded their largest monthly inflow since September 2015.
The IA said this was due to financial markets on the continent having improved following political and economic developments.
Europe ex-UK received a net retail inflow of £290 million (€330 million) and European smaller companies took in £42 million.
The much smaller Europe including UK sector took in £11 million.
Overall in the UK’s funds industry in May, net retail sales were the fourth highest on record at £3.6 billion.
Equity funds received a net retail inflow of over £1 billion, while the best selling sector was sterling strategic bond, with a £392 million inflow.
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