Please fill in the form to view this edition of the Fund Flow Index

Signs of post-pandemic recovery see UK equity funds enjoy inflows for the first time in eight months

Fund Flow Index - March 2021

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