06.06.2023

ESG Equity Funds Suffered Worst Month of Outflows

06.06.2023
ESG Equity Funds Suffered Worst Month of Outflows

From Calastone Fund Flow Index:

UK investors took shelter in money market funds in May at the fastest rate since the mini-budget, as high volatility in bond markets signalled concerns over inflation, the likely path of interest rates in the UK and abroad, the US debt ceiling and the outlook for economic growth.

Key highlights from this month’s FFI:

  • Money market funds – offering safe haven and high yields – absorbed £419m cash in May, the most since mini-budget and second-most since Covid-19 lockdown began
  • Volatile bond markets curbed fixed-income inflows, but investors still added to holdings, attracted by high yields
  • Equity funds suffered outflows – volatile bond markets and bad news on inflation hit sentiment
  • ESG equity funds suffered their worst ever month – £304m of outflows

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

Source: Calastone

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