Calastone Fund Flow Index

Despite the FTSE 100 recently reaching an all-time high, UK-focused equity funds nevertheless suffered their third-worst month of outflows on record in January. For every £1 of sell orders of UK-focused funds, Calastone saw just 59p of buy orders in January – no other fund sector saw a mismatch this large, and not a single trading day saw net buying.

Latest in from our UK FFI: Despite the #FTSE 100 recently reaching an all-time high, UK-focused equity funds nevertheless suffered their third-worst month of outflows on record in January: https://t.co/bcZmLbdihI #bearmarket pic.twitter.com/QMUMGrRFPn

— Calastone (@CalastoneLtd) February 7, 2023

Key highlights from this month’s FFI:

• UK investors sold down UK-focused funds in January despite strong market performance – outflows were third largest on record
• UK-focused funds have suffered 20 consecutive months of outflows
• Since 2015, investors have sold £7.3bn of UK-focused funds and bought £58.0bn of international ones
• Global funds enjoyed inflows in January as world markets continued their rebound
• Fixed income funds saw second highest inflow on record in January – reflecting allure of higher yields and hopes for falling inflation

To read further insights from the FFI, please click through this link.

Source: Calastone