Equity funds have enjoyed a flood of new capital as stock markets have rebounded. In April, a record £2.6bn flowed into funds, comfortably beating the previous best month for equity funds in July 2015. The April total was almost six times the average monthly inflow recorded over the last five years and came after two months of capital leaving the sector for the safety of cash as the COVID-19 pandemic ravaged the global economy and shattered market confidence.
Key highlights from this month's FFI:
- Record inflows of £2.6bn into equity funds in April – the total was almost 6x the long-run average monthly inflow
- Each month in 2020 has seen the highest ever trading volumes in funds as investors struggled to value assets correctly in the context of the unfolding pandemic
- Buying trailed off in the last two weeks of the month
- Index and active funds enjoyed equal inflows, but active funds showed much stronger two-way trading
- Global funds saw record inflows, with UK equities close behind
- Money market funds saw outflows as investors emerged from the safety of cash