June sees highest ever outflows on record for UK equity funds as investors cash in profits following rally in the stock markets ______

07 Jul 2020

As global stock markets closed their best quarter in at least a decade in Q2, fund flows suggested that investors preferred to bank their gains and take their seats on the sidelines, according to the latest Fund Flow Index (FFI) from Calastone, the largest global funds network.

Key highlights from this month’s FFI:

  • Equity fund investors added £3.9bn to equity funds between April and the first week of May, the biggest inflow on record in a two-month period
  • But in June, they sold a net £1.2bn, banking the profits they have made on the market rebound
  • June saw the fifth largest outflows on record for equity funds
  • All categories of equity funds were hit by net outflows, except global funds
  • Active funds took most of the impact, but even perennially bought passive funds saw a rare outflow too
  • Investors parked their cash in the safer options of fixed income and money market funds

To view this edition of the FFI in full please go here

Featured articles