The suspension of high-profile manager Neil Woodford’s flagship Equity Income fund has choked off a nascent recovery for similar mutual funds investing in UK stocks, which have been in the Brexit doldrums for two years but had showed signs of recovery in May.

Equity income funds suffered their highest monthly net withdrawals in almost a year in June, with UK investors pulling £358m out of the sector, according to data from Calastone, the mutual fund sales network. Around two-thirds of Calastone’s equity income funds data relates to funds that invest in the UK.