The vaccine-induced euphoria that saw equity funds enjoy their second-best month on record in December evaporated in January as contagious new Covid-19 variants prompted surging infection rates around the world. Net inflows fell by 97.5% month-on-month to just £64.6m, no more than a rounding error in the context of busy trading volumes well above average at £21.8bn.
Key highlights from this month's FFI:
- Equity inflows dried up in January as pandemic surged ahead
- UK and European equity funds shunned by Covid-shy investors
- Net equity fund inflows fell by 97.5% month-on-month
- Traditional active equity funds pummelled, giving up December’s inflows
- ESG boom continued
- Index funds escaped the selling, whilst ond funds enjoyed a very strong month