Greenland tensions drove a flight from equity funds in January, marking a weak start to 2026. Outflows totalled a net £697m during the month, after a calmer December. January extended the bout of net selling to an unprecedented eighth consecutive month.
Key highlights from this month's FFI:
- Greenland tensions triggered renewed equity fund outflows - £697m in January
- The escalation in late January marked a clear turning point in monthly flows
- European and UK equity funds bore the brunt of selling, with other regions largely unaffected
- Geopolitical risk is exerting a heightened influence on fragile investor sentiment
- Fixed income and mixed assets remained steady amid equity weakness