Equity funds were hit by a fifth consecutive month of outflows in September as the summer’s volatile bond markets forced a reappraisal of stock valuations. Outflows of £206m from equity funds were, however, the least severe since February this year.
Key highlights from this month's FFI:
- UK funds hit by largest outflows, but relative to their size
- US funds are seeing more selling pressure
- ESG funds suffer 5th consecutive monthly outflows – investors increasingly turning their backs
- Global funds remain the investor’s favourite, and emerging markets enjoy a moment in the sun
- Index funds are back in vogue after losing out to active ones in 2021 and 2022
- Fixed income funds see outflows in September as market volatility hits sentiment
- Mixed asset funds suffer worst month on record – risk/reward profile is no longer attractive