UK-domiciled funds have suffered outflows of £5bn in March, according to figures from Morningstar Direct, bringing the total outflows since April 2018 to £30bn.
Investors moved UK-based assets into European countries in the lead-up to the original Brexit deadline day on 29 March, with Luxembourg emerging as the biggest winner from the shift, analysts at Morningstar said.
UK and European equity markets were particularly out of favour with investors as £1.3bn was withdrawn last month.
Brexit has made analysing fund flows from UK-domiciled funds difficult"
"Brexit has made analysing fund flows from UK-domiciled funds difficult," said Bhavik Parekh, associate analyst, manager research.
"In the months leading up to the deadline, investors and fund families became increasingly worried over the impact of an unfavourable deal and its negative implications."
"Fund families began to move assets into vehicles that are domiciled in Europe, primarily Luxembourg.
"As a result, outflows from UK-domiciled funds show both movement of assets into Lux-domiciled funds and investor withdrawals."
The UK and European equity markets have been particularly out of favour with fund buyers, as the figures show some £1.3bn of redemptions were from these two areas.
The only long-term asset class that had a positive outlook in March were fixed income funds, which attracted inflows of £337m.
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