Other key findings for March 2022 include:
- Fixed Income funds saw outflows of £3.3 billion, as persistently high inflation and tightening monetary policy threatened to undermine investors’ returns.
- European Equity funds saw outflows of £505 million, up from £142 in February, reflecting the region’s economic exposure to Russia’s invasion of Ukraine.
- Mixed Investment 40-85% Shares was the bestselling IA sector in March with inflows of £579 million, as savers sought diversified investments amidst market volatility ahead of April’s ISA allowance deadline.
- Responsible Investment funds saw their strongest monthly inflows so far in 2022, accelerating from £670 million in February to £935 million in March.
Q1 2022 hedge fund letters, conferences and more
Investors Dump Funds In Face Of Uncertainty
Emma Wall, Head of Investment Analysis and Research, Hargreaves Lansdown, said:
“It is not a surprise to see fund flows turn negative in March, as the war in Ukraine dominated the headlines and inflation hit record highs. The market reaction to the devastation in Eastern Europe was extreme volatility, and while many investors took the opportunity to take speculative bets, many chose to take their money off the table and turn to the perceived safe havens of cash and gold. HL clients have also turned to multi-asset funds which prioritise capital preservation, outsourcing asset allocation in the face of market uncertainty. It is worth noting however that April flows data has been more positive – at least amongst HL clients. We have seen inflows over the past month, particularly into broad-based active and passive equity funds, such as Rathbones Global Opportunities and FTSE All World ETFs. The IA data also shows responsible funds have bounced back in popularity in March, and recent fund flows on the HL platform show this too, particularly into clean energy funds, investment trusts and ETFs.”
Data from HL’s platform
Top funds, April (net buys, alphabetical)
Top ETFs, April (net buys, alphabetical)
Top investment trusts, April (net buys, alphabetical)
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