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• Equity funds saw record outflows in October, with £3.63bn withdrawn, marking a fifth month of selling.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