Equity fund outflows surged in July as the transition to the new government added a fresh layer of uncertainty over the direction of UK economic policy and taxation, according to the latest Fund Flow Index from Calastone, the largest global funds network.
Key highlights from this month’s FFI:
- Equity fund outflows in July hit highest level since 2025 budget
- £1.61bn withdrawn from equity funds is the fifth largest in any month on record
- UK equity funds shed £948m but most fund sectors saw outflows
- Active funds saw heavy selling – third worst month on record
- Multi-asset funds suffered their worst month since 2022
- Pension tax changes announced under the Starmer–Reeves administration appear to have contributed to sustained withdrawals
- Under the new Burnham–Healey administration, speculation about higher capital gains and other wealth taxes may be accelerating investor action
View this edition of the FFI in full
