UK investors were brimming with confidence at the end of 2023, according to the latest Fund Flow Index from Calastone, the largest global funds network.

December’s improvement in sentiment was evident across all asset classes: inflows to equity funds soared, fixed income funds saw increased inflows, buying of safe-haven money market funds dropped sharply and outflows from out-of-favour mixed asset and real estate funds pared back significantly.

Key highlights from this month’s FFI:

• December inflows to equity funds surged to £1.19bn, their best month since April 2023
• US equity funds enjoyed record monthly inflows; European funds second-best on record
• Unloved UK equity funds saw further outflows – 31st consecutive month of net selling, and third year of net outflows in a row
• Overall in 2023, equity funds shed capital for second year running
• ESG equity funds hit by first year of net selling since ESG boom began in late 2019
• Money markets had by far their best year on record – inflows exceeded previous 8 years combined
• Fixed income fund inflows returned at the end of 2023, as bond markets recovered strongly

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

Source: Calastone