Outflows from UK-focused equity funds fell to their lowest level in July since investors turned their backs decisively on their home market three years ago, according to our latest Fund Flow Index. Investors sold a net £207m of their UK-focused fund holdings, the best result for the sector since August 2021, and less than one third of the average monthly outflow year-to-date.
Key highlights from this month's FFI:
- UK-focused equity fund outflows shrank to £207m in July – lowest since outflows began three years ago
- The election of the Labour government with a large majority prompted a £59m inflow the day after the poll
- Selling of UK-focused funds fell below average and buying rose above average in July
- Net inflows to all equity funds were £2.19bn in July – a record seven months for inflows since January
- North American and emerging market equity funds saw the strongest inflows – the latter a monthly record