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MARKET TURBULENCE KNOCKED CONFIDENCE IN AUGUST BUT EQUITY FUND INVESTORS BOUGHT THE DIP

Fund Flow Index - September 2024

Inflows to equity funds fell sharply in August. The short-lived market panic at the beginning of the month that saw stock markets worldwide fall sharply before rebounding knocked confidence and meant equity-fund inflows fell to £545m, down by three quarters (75.1%) month-on-month and to their lowest level since November 2023.

Key highlights from this month's FFI:

  • Equity fund inflows fell by three quarters compared to July, shrinking to £545m
  • Market convulsions caused modest net selling in first three days of the month but this was followed quickly by inflows
  • Inflows dried up once stock markets recovered
  • All the main equity fund geographies saw reduced inflows or increased outflows
  • UK-focused funds saw outflows rise but the net selling was again less severe than the recent average
  • Fixed income funds saw outflows surge to £516m, the third worst on Calastone’s record, despite gains in bond prices
  • Safe haven money market funds saw the largest inflows in a year at £592m