Equity fund flows hit as coronavirus saps confidence ______

11 Feb 2020

Equity fund inflows dropped sharply in January, failing to maintain the momentum generated by a surge of inflows that gave equity funds their best month in two years in December 2019. The latest Fund Flow Index (FFI) from Calastone, the largest global funds network, shows that net inflows fell by more than two thirds to £618m in January. Two-fifths of this new capital flowed into UK equity funds, though the inflow to UK equities dropped by three quarters month on month, as the post-election bounce in sentiment faded and coronavirus news began to hit.

Some of the key highlights from this edition of the FFI:

  • Equity fund inflows fell sharply in January though they remained in positive territory
  • Active funds saw inflows drop nine-tenths, month-on-month
  • Total trading activity in equity funds rose on the back of increased selling
  • Coronavirus outbreak sparked sharp change in sentiment when it hit mid-month, with Asia focussed funds and active equity funds bearing the brunt of the selling
  • Asia focussed funds saw the largest outflow since July 2016
  • Safe-haven assets were relative winners

To download the full report go through this link

Featured articles