Cash flows back to equity funds at fastest rate since December 2021 as optimism returns______

UK investors shrugged off concerns over bank failures in the US and Switzerland in March and turned decisively more positive on equity markets, according to the latest Fund Flow Index from Calastone, the largest global funds network. They added a net £960m to their holdings in March, the best month for equity funds since December 2021. March marked a significant turnaround from outflows seen in January and February. Over the whole of the first quarter, just £199m flowed into equity funds.

Key highlights from this month’s FFI:

• Equity funds enjoy £960m of inflows in March, reversing a run of investor pessimism
• Global funds scooped most of the new cash, but investors are switching out of UK-focused and European equity funds; emerging markets also saw strong inflows
• Uptick in confidence benefited passive funds in particular
• ESG gold rush may have peaked – inflows have fallen sharply
• Fixed income funds enjoyed a record first quarter with inflows of £2.75bn

View this edition of the FFI in full