Equity fund outflows surged in July as the transition to the new government added a fresh layer of uncertainty over the direction of UK economic policy and taxation.
Key highlights from this month's FFI:
- Equity fund outflows in July hit highest level since 2025 budget
- £1.61bn withdrawn from equity funds is the fifth largest in any month on record
- UK equity funds shed £948m but most fund sectors saw outflows
- Active funds saw heavy selling – third worst month on record
- Multi-asset funds suffered their worst month since 2022
- Pension tax changes announced under the Starmer–Reeves administration appear to have contributed to sustained withdrawals
- Under the new Burnham–Healey administration, speculation about higher capital gains and other wealth taxes may be accelerating investor action