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Plunging investor confidence pushes August fund flows to near three-year lows, and both equity and property funds see strong outflows

Fund Flow Index - September 2019

Flows into UK-based funds slumped to their second-lowest level in three years in August. Across all asset types, inflows were down, or there were outright outflows - overall UK investors added just £640m to their holdings, well below the long-run £2.4bn net monthly inflow.

Here are some of the key highlights from this month's FFI:

  • Investors added just £640m to all types of UK fund in August, less than one third of the monthly average inflow, despite very strong overall trading volumes
  • Only December 2018 has seen lower fund inflows in the last three years
  • Equity funds were hardest hit, with UK-equity funds accounting for three-fifths of outflows
  • Announcement of Parliamentary suspension caused a spike in outflows from UK-equity funds
  • Real-estate funds saw second-largest outflows on record
  • Fixed income funds saw inflows, but they were much lower than of late as tumbling bond yields reduced the attraction of bonds as a safe haven
  • Flows offshore continued unabated