February saw funds focused on UK equities enjoy their first inflows since May 2020 as the vaccine programme raced ahead. The significant reversal brings an end to a painful eight-month stint of outflows, second in duration only to the EU-referendum period. During these eight months, UK-focused funds shed £2.2bn of capital. But in February investors tentatively dipped their toes back into UK waters, adding £145m to their holdings.
Key highlights from this month's FFI:
- UK-focused equity funds broke 8-month run of outflows in February
- But cautious roadmap to post-pandemic normality dampened enthusiasm
- Equity funds saw inflows overall, but significant divergence from one category to another
- Sharply higher bond yields did not deter investors in fixed income funds
- ESG funds set a new record in February