UK-focused equity funds were pummelled with more large outflows in May. May’s flight for the exits extended outflows from UK-focused funds to a record twelve consecutive months, longer than for any other segment of the market.
Key highlights from this month's FFI:
- May saw net outflows of £826m for UK-focused equity funds – the three worst months on record for UK equity funds have been in 2022
- UK smaller companies accounted for 1/6th of the May outflow – double their share of fund values
- Income funds represent a safe haven in inflationary times and enjoyed inflows in May
- Across all equity funds, outflows were £310m
- Year-to-date ‘regular’ equity funds have shed £3.7bn but ESG funds have garnered a net £2.8bn
- Property funds, also commonly viewed as an inflation hedge, saw outflows fall to their lowest level in almost four years