From Calastone Fund Flow Index:

UK investors could not be persuaded to invest in July despite the global stockmarket rally. Instead, they took higher share prices as an opportunity to withdraw capital from equity funds, selling a net £983m of their holdings. This was the highest outflow since September 2022 when the government’s mini-budget upset the financial-market apple cart. Furthermore, over the last three months, outflows have totalled £1.95bn, despite global stock markets rising strongly.

Key highlights from this month’s FFI:

• Investors sold £983m of equity funds in July even as global stock prices continued to climb
• UK equity funds saw their 26^th consecutive month of net outflows while US funds suffered their second-worst month on record
• ESG funds were hit by largest outflows on record – the third consecutive month of net selling
• Global equity funds, emerging markets and specialist technology funds bucked the trend and saw inflows
• Fixed income funds are absorbing cash as investors lock into high yields
• Strong buying of money market funds reflects even higher short-term rates and need for liquidity

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

Source: Calastone