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US MARKET RALLY DRIVES SURGING INFLOWS TO EQUITY FUNDS

Fund Flow Index - March 2024

In February, UK investors piled into equity funds at the fastest rate in almost three years. They added £2.66bn to their holdings, making it the best month for inflows since May 2021 - and the fourth best month on Calastone’s nine-year record.

Key highlights from this month's FFI:

  • Equity fund inflows soared to highest level in three years in February – the 4th best month on record
  • Inflows were highly concentrated – with North America the main beneficiary
  • ESG funds enjoyed a second strong month – driven by US markets
  • UK and Asia-Pacific funds remain out of favour
  • Fixed income funds saw steady buying as market yields rose, but money market flows are drying up