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 Investment Association data shows there has been more than £45bn withdrawn from UK equity funds in the last eight years, and over £24bn of outflows registered in the last two years alone.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

Consultancy launches to provide IFAs with 'robust' investment processes

Consultancy launches to provide IFAs with 'robust' investment processes

Sheridan Admans launches Infundly

Isabel Baxter
clock 06 November 2025 • 1 min read
Inflation protection not front of mind for financial advisers

Inflation protection not front of mind for financial advisers

Titan Square Mile report suggests

Jen Frost
clock 04 November 2025 • 3 min read
Trick or treat? The UK and global economy face their Halloween ghosts

Trick or treat? The UK and global economy face their Halloween ghosts

‘Wealth managers and market professionals are tiptoeing past economic graveyards’

Stephen Jones
clock 31 October 2025 • 4 min read