UK investors were at their most bullish in almost three years in January according to the latest Fund Flow Index from Calastone, the largest global funds network. November and December saw growing investor confidence as inflows to equity funds returned, but January saw the bulls return in full force. Inflows to equity funds surged to £2.01bn, the highest since April 2021 and the eighth strongest month for inflows to equity funds on Calastone’s nine-year record.
Highlights from this month’s FFI:
- Equity fund inflows reached £2.01bn in January, one of the top ten months on record and the highest since April 2021
- US equity funds saw record inflows and European equity funds had their third-best month
- But weak China news meant outflows from Asia Pacific funds, while UK equity funds remained out of favour
- ESG funds enjoyed a sudden resurgence, seeing record inflows, but too soon to call a new trend after months of negativity
- Changes in demand from buyers is more important than supply from sellers in determining fund flows
- Inflows to safe-haven money market funds slowed to a trickle after months of strong buying
View this edition of the FFI in full
