February saw equity funds see the first net outflows in more than two years, driven by heavy selling of European funds as economic news from the eurozone deteriorated. Our index overall registered a modestly positive 52.9 in February, as perennial inflows to mixed asset funds and the strength in bonds offset weakness in equities and real estate.
Some of the key highlights from this month's FFI:
- UK investors withdrew £215m from equity funds in February, the first net selling since October 2016
- European equities were by far the weakest category as economic news from the eurozone deteriorated
- UK equities bucked the trend as investors snapped up UK shares at historically low valuations
- Bond funds saw inflows as investors switched from higher risk equities to lower risk fixed income
- Outflows from real estate funds now exceed the immediate aftermath of the Brexit referendum