UK investors drove near-record demand for mixed asset funds in May and the strongest fixed income inflows in three years, according to the latest Fund Flow Index from Calastone, the largest global funds network. Investors moved money out of money market funds while also trimming equity exposure, reallocating towards income-producing and diversified assets during the month.
Key highlights from this month’s FFI:
Bond funds took in £877m in May, their strongest month since June 2023 as investors locked into high yields
Mixed-asset funds added £2.72bn, the second-highest inflow on record – signalling preference for diversification and income
Money market funds lost £669m, their third-worst month on record as investors redeployed into bonds and mixed assets
Equity funds shed £257m, led by outflows from emerging markets, Europe, and Asia
US equity funds remained in positive territory, while global equity flows were flat.
UK equity funds saw their first net inflow since November 2024
