A dramatic turnaround in confidence saw UK investors pour more capital back into equity funds in December 2019 than at any other time in the last two years. A net £2.0 billion flowed into the sector, making it the fifth best month on record; half of this capital was directed towards UK-focused funds, with the rest mainly directed towards global and North American funds. The FFI: Equity soared to 56.7, its highest level in two and a half years. For most of 2019 the index had been neutral or negative.
Key highlights from this month's FFI:
- Equity funds overall enjoyed strongest inflows in 2 years in December, following a lacklustre year for the sector
- UK-focused funds absorbed an unprecedented £1bn in new capital in December, half the total flowing into equity funds overall
- December’s inflow to UK-focused funds was twice the previous monthly record set in July 2015
- Victory for the Conservative Party explains the dramatic increase in appetite for much undervalued UK assets – after election day flows into UK-focused funds almost tripled from already elevated levels