Investments into UK equities fall 63% ahead of EU vote

The level of new investments in UK funds on its platform are down 63% over the last month and down 46% over the last three months versus the same periods last year.

The amounts invested in European funds are down 41%, 22% and 35% in the last one, three and six months respectively versus the same periods last year.

However, the levels of new investments into cash soared by 408% in the last 3 months and up 411% in the last six versus the same periods last year.

Even though new investments in UK and European equities has fallen, overall new investments have increased 33% in the last month on the same period last year and are only down 9% and 10% respectively in the last three and six months.

Stuart Dyer, rplan’s Chief Investment Officer, commented: “UK investors have clearly been cautious the last few months and it is hard to say how much of this is due to a potential Brexit as there are other concerns regarding world markets. But Brexit is clearly front of mind for UK investors as they fly to safety.

“But it is essential that investors take a longer term view with their investments and construct balanced portfolios designed to be held for five years or more. UK and European equities should play a key role in these."