Advisers have been opting for the perceived safety of cash funds over big-name brands in the weeks leading up to the EU referendum date, according to the latest data from FE’s Market Intel (MI) tool -  underlining the risk-off sentiment gripping the UK’s advisory industry compared to the mood at the start of the year.

Month-on-month research activity on FE Analytics, collated via FE’s Market Intel tool – (which offers us insight into the areas financial intermediaries have been focusing on), shows popular funds like the CF Woodford Equity Income portfolio and Standard Life GARs fund falling out of favour this month to be replaced by those in the Investment Association’s Money Market and Short Term Money Market sectors.

This shift comes at a time when equity markets continue to experience heightened volatility caused by the EU Referendum.

This year as a whole has been a challenging one for investors, with the FTSE All Share dropping at the start of 2016 due to low commodity prices, slowing economic growth in China and further concerns over the effectiveness of measures taken by central bankers.

The performance of the UK Equity Income sector as a whole has been extremely rocky over the past year, according to data from FE Analytics – with the sector down more than 7 per cent in the past year. Comparatively, the Money Market and Short Term Money Market sectors show a much steadier incline.

The FTSE All Share is down 1.38 per cent year to date, while the average IA UK All Companies fund has lost 6.52 per cent. On the other hand, the IA Money Market sector is up 0.12 per cent, data from FE Analytics.

Head of FE Research, Rob Gleeson says: “Despite the results coming as a shock to many in the industry, it’s interesting to see that professional investors were already looking at options to cushion any shocks.

“Following the vote to Leave, we’re in a period of extreme volatility – and therefore capital protection is likely to be key for advisers and their clients. Considering the current climate – cash funds will be attractive to many. But it is worth remembering that cash does have some pitfalls – the most recognisable one currently is if inflation spikes (which it might following the fall in the value of the pound) – then investors will see the value of their capital in cash funds take a hit.”

However, despite the boost to their popularity, cash funds still make up a relatively small section of the retail funds market.