Budget concerns and soaring share prices drive record outflows from equity funds in October______

Equity funds suffered their largest outflows on record in October, according to the latest Fund Flow Index from Calastone, the largest global funds network. Investors withdrew a net £3.63bn from their equity fund holdings, marking a fifth consecutive month of outflows from the asset class, the longest stint of selling since the Brexit referendum in 2016. Between June and October, investors have pulled a net £7.36bn out of equity funds, easily the largest outflow on Calastone’s record.

Highlights from this month’s FFI:

• Equity funds saw record outflows in October, with £3.63bn withdrawn, marking a fifth month of selling.
• £7.36bn has left equity funds since June – the largest outflow in any period on record.
• All equity categories saw net selling; UK funds lost £1.22bn in October alone.
• Global, North American and technology funds also saw heavy withdrawals.
• Investors shifted some of the capital to lower-risk assets, with a record £955m into money market funds and £589m into fixed income.

View this edition of the FFI in full