Investors return to UK equity funds after eight months of outflows

Higher bond yields did not deter investors

James Baxter-Derrington
clock • 2 min read

The UK equity fund market has shown its first signs of post-pandemic recovery as investors broke an eight-month outflow streak, according to Calastone's latest Fund Flow Index.

February provided UK equity funds with the first positive net flows since May 2020 as investors added £145m to the asset class, although the final week saw investors take back £19m. This ended the eight-month run of consecutive outflows from the space totalling £2.2bn, which was second in duration only to the EU referendum period. February proved a good month for equity funds generally, with overall flows to the asset class totalling £961m, with a marginally positive FFI:Equity of 52.1 - a reading of 50 means buys equal sells. However, flows diverged significantly between categorie...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Alec Cutler: The swinging pendulum of investor sentiment

Alec Cutler: The swinging pendulum of investor sentiment

Exploring how investors view the ever-changing energy market

Alec Cutler
clock 05 February 2025 • 4 min read
FCA to cut corporate bonds red tape to drive greater retail investor and wealth manager access

FCA to cut corporate bonds red tape to drive greater retail investor and wealth manager access

Move intended to boost UK growth

Linus Uhlig
clock 31 January 2025 • 2 min read
Partner Insight:  Future-proofing your business:  The case for investment outsourcing

Partner Insight: Future-proofing your business: The case for investment outsourcing

Schroders' Jamie Fowler and Philip Chandler explain why outsourcing is a proactive strategy that can transform your advisory business.

Schroders
clock 31 January 2025 • 2 min read