UK retail funds saw net inflows of £642m in September, reversing outflows of £217m in the previous month, according to the latest statistics from the Investment Association.
August's outflows of £217m marked the first month of negative flows since the EU referendum in 2016, but September once again saw a turn of fortunes for UK retail funds.
The biggest sector contributor to the positive flows last month was IA Mixed Investment 40%-85% Shares with net retail sales of £268m.
This beats inflows into the Global sector, which was the best-seller last month, having taken in £417m. In September, it attracted positive flows of £236m.
Funds in the North America sector also saw strong demand, jumping from tenth place in August with sales of just £62m to the third most popular sector in September with £181m. As a region, North America was the best-seller last month, taking in a total of £204m.
However, UK equity funds, which combine the IA UK All Companies, UK Equity Income and UK Smaller Companies sectors, continued to suffer outflows. At £329m, these were a slight improvement on £429m that exited the sector in August.
UK All Companies remained the worst-selling sector, with outflows of £391m during the month. At the same time, European equity funds also reported outflows of £58m.
Chris Cummings, chief executive of the Investment Association, said: "Uncertainty continues to be a driving factor for investors, with global and mixed asset funds benefiting, as savers look to diversify and manage their risk.
"September saw net retail sales bounce back into positive figures, however UK equities continue to remain firmly out of favour, with European equities experiencing a fifth consecutive month of outflows."
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