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

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