04.07.2022

Russian War on Ukraine Prompts Equity Flight

04.07.2022
Russian War on Ukraine Prompts Equity Flight

Russia’s invasion of Ukraine prompted the biggest flight from equity funds since the Brexit referendum, according to our latest Fund Flow Index.

UK investors withdrew a net £1.53bn of capital from their equity holdings in March, just shy of the record £1.56bn they redeemed following the UK vote to quit the EU.

Key highlights from this month’s FFI:

  • Equity funds saw net outflow of £1.53bn in March, the largest outflow since July 2016
  • Active decisions to sell were the main driver of outflows, rather than a buyers’ strike
  • Outflows rose steadily each week in March before tailing off at the end of the month as Russia’s failure to advance  became increasingly obvious and markets recovered
  • Global equity funds saw the biggest outflows, but UK-focused equities were relatively protected by a heavy weighting of oil and commodity stocks
  • ESG funds continued to enjoy inflows, though at lower levels
  • Fixed income funds also suffered outflows – second-worst month since pandemic began

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

Source: Calastone

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