Record outflows hit UK-focused equity funds in January, according to our latest Fund Flow Index. Investors sold down a net £795m of their UK-focused equity fund holdings, comfortably beating the previous record set in June 2020.
Key highlights from this month's FFI:
- Record £795m net outflow (value of sells minus value of buys) from UK-focused equity funds in January
- Cumulative outflows over eight consecutive months of outflow reached a record £2.9bn
- Outflow driven by a buyers’ strike, not an increase in selling activity – selling has held steady, but buying activity has melted away
- Appetite for other categories of equity funds overall was steadier than UK ones, though inflows fell month-on-month
- Fixed income and mixed asset funds also saw inflows fall significantly