The war in the Middle East drove a sharp increase in outflows from equity funds in March, according to the latest Fund Flow Index from Calastone, the largest global funds network. Outflows surged to £1.44bn (up from £927m in February), making March the worst month since November when UK Budget concerns were driving significant selling. March’s outflows were the 7th worst on record and extended the run of equity fund outflows to an unprecedented 10 consecutive months.
Key highlights from this month’s FFI:
Equity fund outflows jumped to £1.44bn in March, their worst month since November 2025
March was the 7th worst month on record for equity fund outflows and marked a tenth consecutive month of net selling
Selling was broad-based, with Europe, Asia-Pacific, emerging markets and Japan seeing the sharpest deterioration
UK funds saw the largest outflows (£592m, but anti-UK equity sentiment continues to moderate relative to other fund sectors)
North America was the only sector with inflows
Falling bond markets drove net selling of fixed income funds driving cash to safe-haven money market funds
