Signs of post-pandemic recovery see UK equity funds enjoy inflows for the first time in eight months ______

04 Mar 2021

February saw funds focused on UK equities enjoy their first inflows since May 2020 as the vaccine programme raced ahead. The significant reversal brings an end to a painful eight-month stint of outflows, second in duration only to the EU-referendum period. During these eight months, UK-focused funds shed £2.2bn of capital. But in February investors tentatively dipped their toes back into UK waters, adding £145m to their holdings.

Key highlights from this month’s FFI:

  • UK-focused equity funds broke 8-month run of outflows in February
  • But cautious roadmap to post-pandemic normality dampened enthusiasm
  • Equity funds saw inflows overall, but significant divergence from one category to another
  • Sharply higher bond yields did not deter investors in fixed income funds
  • ESG funds set a new record in February

View this edition of the FFI in full

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