Investors return to UK equity funds after eight months of outflows

Higher bond yields did not deter investors

James Baxter-Derrington
clock • 2 min read

The UK equity fund market has shown its first signs of post-pandemic recovery as investors broke an eight-month outflow streak, according to Calastone's latest Fund Flow Index.

February provided UK equity funds with the first positive net flows since May 2020 as investors added £145m to the asset class, although the final week saw investors take back £19m. This ended the eight-month run of consecutive outflows from the space totalling £2.2bn, which was second in duration only to the EU referendum period. February proved a good month for equity funds generally, with overall flows to the asset class totalling £961m, with a marginally positive FFI:Equity of 52.1 - a reading of 50 means buys equal sells. However, flows diverged significantly between categorie...

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