Former favourites Invesco Perpetual Income and Invesco Perpetual High Income have seen outflows of £1.4 billion in the last month, following star manager Neil Woodford's decision to Invesco and set up shop on his own.
Despite Woodford not leaving the asset manager where he has spent the last 25 years until April, investors are voting with their feet and fleeing in their droves. Investors were warned not to panic sell Woodford's equity income funds, but it seems they did not heed the advice and instead are opting for Woodford's rivals.
While institutional investors are holding their nerve, private investors are selling off their Invesco holdings. The sales of the two Invesco funds made up 90% of all non-institutional outflows over the past month.
The sheer volume of trades against Woodford's funds meant the UK Equity Income sector was the least popular last month - at a time when most investors are backing domestic stocks. The sector saw outflows of £625 million, worse even than Corporate Bond funds. Funds in the Asia Pacific excluding Japan sector had outflows of £212 million.
Silver-rated bond fund M&G Optimal Income fund saw inflows of £326 million over the past month, soaking up some of the ex-Woodford cash - and UK equity trackers also ranked in the top five most popular as investors chose to go passive.
Former industry darling M&G Strategic Corporate Bond fund had outflows, over the past month - adding to the £1.2 billion that has poured out over the past year as fixed income fell from favour. Top-pick of the past First State Asia Pacific Leaders has also seen outflows of £335 million since January thanks to uncertain surrounding the Chinese stock market.
Source for all data: Morningstar Direct.