Equity funds suffered their worst month of outflows on record in October. Investors sold down a net £2.71bn of their holdings, with every category of equity funds seeing outflows. The sharp outflows in October followed a weak September, which itself had seen the first outflows since October 2023.
Key highlights from this month's FFI:
- Investors withdrew a net £2.71bn from funds in October – a record high, following early selling activity in September
- Sell orders surged 36% month-on-month but dropped 40% overnight as Capital Gains Tax hikes took effect on Budget Day
- Buying activity also rose sharply – indicating reinvestment of some of the proceeds
- Clear indication that investors sought to crystallize profits at lower CGT rates
- UK-focused funds bore the brunt of the selling, but every equity-fund sector saw outflows
- Global funds saw their first outflows in more than two years
- Bond funds saw highest inflows since June 2023 and safe-haven money market funds also saw net buying