- Why Calastone?
The market crash caused by a dramatic reassessment of the potential economic impact of the coronavirus prompted a flood of outflows from equity funds in February. The apparently modest £348m net outflow for February belied the extent of the reversal in investor sentiment, however. Investors bought equity funds enthusiastically in the first three weeks of February, having shrugged off an initial flutter of virus-induced nerves at the end of January. But when, on Monday 24th February, the markets began their worst week in over a decade as the virus took hold in one country after another, investors withdrew their capital from equity funds at their fastest rate on Calastone’s record: in the last week of February alone they sold an unprecedented net £1.55bn of equity holdings. Calastone’s FFI: Equity dropped to 49.1 for the full month, but in the last week was just 37.7, its lowest ever reading (a score of 50 means buys equal sells).
Some key highlights from this edition of the FFI:
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