SENTIMENT IS NOW ON THE UP, BUT UK-FOCUSED FUNDS ARE MISSING THE BOAT
Investment fund flows were the weakest in at least eight years in 2022, according to the latest Fund Flow Index from Calastone, the largest global funds network.
Key highlights from this month's FFI:
- Equity funds suffered outflows of £6.29bn
- UK-focused funds hit hardest by far with record outflows of £8.38bn
- Global funds enjoyed inflows – thanks to popularity of ESG
- Passive funds suffered first year of outflows on record and fared worse than active for second consecutive year
- Q4 saw optimism begin to return – equity funds saw inflows again (though UK remains out of favour)
- Hopes of an end to the interest rate cycle spurred fixed income inflows in Q4, after a difficult first few months of 2022