UK equities took another big hit in October with funds representing the asset class suffering net retail outflows of £444m in the month, according to the Investment Association (IA).
Continuing their six-month run of retail net outflows, the IA UK Equity Income sector was the worst selling, losing £272m while UK All Companies suffered a comparable £224m of outflows.
On the flipside, fixed income was the best-selling asset class, with net retail sales of more than £2bn in October, contributing to an overall increase in UK funds under management (FUM) of £29bn in the month.
The latest statistics show IA £ Strategic Bond as the best-selling sector with net retail sales of £1.6bn, while IA Targeted Absolute Return took £400m.
IA Global and Global Bonds received £345m and £327m of net retail sales, respectively. This was followed by IA Mixed Investment 40-85% Shares, which reported net retail sales of £224m.
Mixed asset was the third best-selling asset class with net retail sales of £963m, with the IA adding that the last time mixed asset experienced a monthly outflow was January 2016.
Chris Cummings, chief executive of the IA, said: "2017's record-breaking run continued in October as monthly net retail sales were again in excess of £5bn.
"Industry funds under management also increased by almost £30bn through the month which means at the end of October our members were responsible for £1.194trn of UK investor savings and investments."
Geographically, Japan funds enjoyed the strongest sales figures with net retail sales of £234m, followed by European equity funds, which was the next best-selling asset class, at £220m.
Asia, Global and North America followed with net retail sales of £140m, £129m and £64m, respectively.
Alastair Wainwright, fund market specialist at the IA, said: "For the fifth month in a row, fixed income was the best-selling asset class with net retail sales of more than £2bn.
"For the third month in a row, £ Strategic Bond was the most popular sector with retail investors as they allocated £1.6bn in October.
"Notably, the £ Strategic Bond has featured in the five best-selling sectors each month since December 2016."
'Greater reason' for market pullback
Can be rewarding
Former Jelf MD to join in January
Bigger impact than Lifetime ISA