VOLATILE MARKETS PROMPT FLIGHT FROM EQUITY FUNDS IN JULY AS INVESTORS LOOK TO SHED RISK______

UK investors sold down their equity fund holdings in July, according to the latest Fund Flow Index from Calastone, the largest global funds network. The net outflow of £416m took the year-to-date total to £2.35bn, and contrasts with £11.08bn of inflows in the same period of 2021. Only 2016, beset by the Brexit referendum and a toxic US election campaign, has seen a worse January to July period for equity funds since Calastone’s Fund Flow Index data began eight years ago.

Key highlights from this month’s FFI:

• Equity funds saw £416m outflow in July, taking YTD outflow to £2.35bn – contrast to £11.08bn inflow in same period of 2021
• UK and European equity funds have seen the worst outflows
• Emerging markets have been uncharacteristically resilient
• Rising bond prices attract inflows to fixed income funds and property funds enjoy further new cash
• Risk-off is the big trend of 2022
• Absolute Return funds benefit from bear market – enjoy revival

View this edition of the FFI in full