AFTER A RED-HOT START TO 2024 FUND INFLOWS COOLED DRAMATICALLY IN MAY______

After a bumper ISA season, fund inflows dropped sharply in May, according to the latest Fund Flow Index from Calastone, the largest global funds network. Equity fund inflows fell to their lowest level since November 2023, while fixed-income and mixed-asset funds saw outflows. Meanwhile, safe-haven money-market funds absorbed cash as investors switched out of these two asset classes.

Key highlights from this month’s FFI:

  • Equity fund inflows fell to £775m in May – two thirds lower than the January to April average
  • North American inflows fell sharply – but May still numbered among the sector’s best months
  • UK-focused equity funds saw second-highest outflows on record in May – £1.11bn
  • Fixed income – May was the second-worst month for bond fund outflows on record
  • Safe-haven money market funds absorbed cash
  • Outflows from mixed-asset funds resumed after brief ISA-season hiatus
  • ESG equity funds enjoyed fifth consecutive month of inflows – but buying momentum is fading

View this edition of the FFI in full

View this edition of the FFI in full

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