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Trumptastic: equity and tracker funds enjoy bumper inflows

Trumptastic: equity and tracker funds enjoy bumper inflows

UK investors saw Donald Trump's shock victory in the US election in November as a strong signal to put risk back on the table. 

According to the latest figures from the Investment Association (IA), equity funds registered net sales of £583 million in November, their first positive month for 2016.

'UK investors were tempted back into equity funds in November,' IA chief executive Chris Cummings noted.

'The long period of uncertainty global markets have faced through the US election cycle also came to end with Donald Trump's unexpected win.' 

The improved sentiment also filtered through to tracker funds, which took in a bumper £1.2 billion in November, their second highest monthly inflow on record after June 2013, when the sector brought in £1.9 billion. 

'Equity trackers took in the largest share of net retail flows, £911 million. No single region stood out as UK, US, Japanese and global tracker funds all experienced strong sales,' IA fund market specialist Alastair Wainwright highlighted.

Tracker funds under management stood at £136 billion at the end of November, with their market share rising from 11.5% to 13.4% over the 12 months. 

These inflows were countered by net redemptions of £202 million in fixed income, the first outflow since February 2016.

Within equities, global focused funds proved to be the biggest draw, raking in £420 million. This was followed by North America, UK and Japanese-focused equity funds, which netted £244 million, £114 million and £107 million respectively. 

Not all equity asset classes were bought indiscriminately however, with Asian and European-focused funds suffering outflows of £147 million and £165 million respectively.

Overall the funds industry saw inflows of £1.5 billion and £1.8 billion from the retail and institutional market respectively. This represented the second highest inflow in 2016 and lifted total funds under management to £1 trillion. 

Equity fund sales were second to the mixed asset class, which attracted £634 million in November. 

Property and money market funds saw small outflows of £5 million and £18 million respectively. 

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