Unwinding home bias: No bottom in sight for UK fund outflows

Domestic fund buyers remain reluctant to back UK funds

clock • 4 min read

Laith Khalaf explores the exodus from UK funds and says should interest rates fall, demand for 'home team' funds may pick up (but not a lot)

It doesn't take a genius to tell you that the UK stock market is deeply out of favour, but the plight of UK equities is nowhere better encapsulated than in the reluctance of domestic fund buyers to back UK funds. In fact, it's worse than that, because ever since 2016 retail investors in the UK have been relentlessly selling funds that invest in UK equities. Investment Association data shows there has been more than £45bn withdrawn from UK equity funds in the last eight years, and over £24bn of outflows registered in the last two years alone. Just to give some perspective, if that leve...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

PA360: It is 'impossible' to pick out the best asset class every year

PA360: It is 'impossible' to pick out the best asset class every year

‘The outsourced route is one that a lot of advisers are now taking’

Hope Coumbe
clock 26 April 2024 • 2 min read
PA360: Framing of information to investors 'extremely pervasive'

PA360: Framing of information to investors 'extremely pervasive'

Consumer Duty states consumer biases must not be exploited

Jenna Brown
clock 25 April 2024 • 1 min read
Schroders chief executive Peter Harrison to retire in 2025

Schroders chief executive Peter Harrison to retire in 2025

Harrison began his career at Schroders as a graduate in 1988

Cristian Angeloni
clock 24 April 2024 • 2 min read