After October’s record outflows, prompted by fears, subsequently justified, that the Chancellor would hike capital gains tax, November in turn saw equity-fund inflows at all-time highs, breaching the £3bn mark for the first time. The two months mirrored each other closely. October’s net selling was £2.71bn as investors took profits, while November’s net buying was £3.06bn as investors reinvested all the funds they had withdrawn the month before.
Key highlights from this month's FFI:
- November net buying of equity funds surged to a record £3.06bn
- The inflow exactly matched the pre-Budget record outflow as investors banked their profits to avoid CGT increases
- UK-focused equity funds saw their first inflows in 42 months, but this is unlikely to mark a renewed turnaround for the unloved UK market
- Fixed income funds saw net buying increase as investors sought to lock into high yields