Record stock prices failed to inspire confidence in August as investors accelerated their flight from equities. Investors withdrew £1.31bn from equity funds, up from net selling of £1.13bn in July, marking the worst bout of outflows since the summer of 2022. Meanwhile, safe-haven money market funds enjoyed their best month in two years. Investors added a net £633m to their holdings.
Key highlights from this month's FFI:
- Equity funds suffered £1.31bn of outflows in August – marking the worst stint of selling since summer 2022 following outflows in July of £1.13bn
- Global equity funds recorded a third consecutive month of withdrawals, an unprecedented run
- UK-focused equity funds also lost £657m, but did better than global funds - for only the second month in eight years
- Investors moved £633m into safe-haven money market funds, their strongest inflows in two years
- Fixed income funds showed mixed signals, with modest inflows in August after July outflows
- Calastone’s Edward Glyn: “Fund investors are wary, clearly fearing a correction is round the corner”