Wealth managers dump UK assets in favour of global bond funds

Brexit risk putting investors off domestic stocks

Wealth managers have continued to move client assets out of funds investing in the UK in 2019, to avoid being "stuck" with holdings negatively impacted by Brexit, according to FE.

FE's latest Adviser Fund Index (AFI), which rebalances twice a year, shows wealth managers now favour funds within the Investment Association's Global Bonds sector in efforts to reduce their exposure to sterling's continued decline as the UK heads towards the 31 October Brexit deadline. Market Movers Blog: US 30y yield falls below 2% for first time In this latest AFI rebalance, which measures exposure via different risk weightings, FE found IA UK Smaller Companies and IA UK Direct Property funds saw falls of more than 1.6% and 1.1% respectively for AFI Aggressive since February. Me...