UK investors rushed for the exits in August, pulling a record net £1.93bn from equity funds. The outflow easily beat the previous records set in June and July 2016 when the Brexit vote prompted a net outflow of £1.54bn and £1.56 bn respectively. August’s net outflow was driven by a significant increase in selling activity rather than a drop-off in buy orders, indicating a decisive choice to exit holdings.
Key highlights from this month's FFI:
- August saw record selling of equity funds - £1.93bn
- Bear-market rally saw £2.33bn withdrawn from equity funds between mid-July and mid-August
- All geographies saw outflows, with record selling in North American and Asia-Pacific funds
- Sector funds focused on renewable energy and infrastructure enjoyed inflows, as did ESG equity
- Equity funds have shed £4.3bn year-to-date