US equities see continued inflows in February as UK investors switch again from unloved UK funds______

After running for cover during January’s financial market turbulence, UK investors were more positive in February. They added a net £1.09bn to their equity-fund holdings during the month, having been net sellers in January. Rising bond markets also prompted the largest inflows to fixed income funds since June 2023, making February the third best month on Calastone’s 10-year record for the sector.

Key highlights from this month’s FFI:

  • Equity fund inflows reached £1.09bn after outflows in January – calmer markets encouraged cautious buying
  • UK-focused funds saw accelerating outflows – £1.22bn left the sector, the sixth worst month on record
  • Global and North American funds scooped strong inflows – reflecting a US focus by investors
  • Bond-market turbulence pushed yields to pre-global financial crisis (GFC) levels in January – tempting investors to buy in bulk – bond fund net inflows were the third highest on record in February

View this edition of the FFI in full

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