UK investors sold down their equity fund holdings in July - the net outflow of £416m took the year-to-date total to £2.35bn, and contrasts with £11.08bn of inflows in the same period of 2021. Only 2016, beset by the Brexit referendum and a toxic US election campaign, has seen a worse January to July period for equity funds since Calastone’s Fund Flow Index data began eight years ago.
Key highlights from this month's FFI:
- Equity funds saw £416m outflow in July, taking YTD outflow to £2.35bn – contrast to £11.08bn inflow in same period of 2021
- UK and European equity funds have seen the worst outflows
- Emerging markets have been uncharacteristically resilient
- Rising bond prices attract inflows to fixed income funds and property funds enjoy further new cash
- Risk-off is the big trend of 2022
- Absolute Return funds benefit from bear market - enjoy revival