UK savers invested a total of £1.4 billion (€1.6 billion) in retail funds throughout February – with mixed asset funds being the best-selling asset class.
Overall, mixed asset funds saw £711 million of inflows across the month, as news of the coronavirus began to dominate headlines.
February’s best-selling sector was Volatility Managed, with £888 million in sales, while responsible investment funds saw a second consecutive month of “record” inflows with £735 million of new cash, according to the latest figures from the UK’s Investment Association.
Chief executive Chris Cummings said: “Despite the growing global impact of coronavirus on economic activity, February in the fund market didn’t reveal any dents in investor confidence.”
But “caution was in the air”, as savers’ showed preference towards mixed asset funds. “Few in February could have predicted the impact of a spate of lockdowns on global capital markets, or the extraordinary raft of measures from governments and central banks to help shore up economies around the world,” Cummings added.
UK Gilts was the fourth best-selling sector in February, with net retail sales of £247 million. UK gilts also turned out to be the only positive performers in March, as the coronavirus impact hit home, according to separate data from FE fundinfo.
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