Sharp Shift in Fund Flows03.03.2022
Surging inflation and the outbreak of war in Europe took their toll on investor sentiment in February according to our latest Fund Flow Index.
Latest in from our Fund Flow Index: #inflation and the outbreak of war in Europe took their toll on investor sentiment in February – investors pulled out capital to the tune of a net £604m in the final three trading days of the month: https://t.co/87Lxe4hOiV #ukraineconflict pic.twitter.com/TeL96O5n7r
— Calastone (@CalastoneLtd) March 3, 2022
Key highlights from this month’s FFI:
- Equity funds saw a surge of outflows following Russia’s invasion of Ukraine, leaving February as the second-worst month for equity funds since July 2020
- Post-invasion outflows were driven by a sharp drop in buyers and only a modest increase in sellers – suggesting caution rather than a rout
- Funds focused on all geographies saw outflows following the invasion, but active UK equities funds were hit hardest
- ESG funds continued to enjoy inflows
- Fixed income funds suffered the brunt of inflation fears, with outflows accelerating on war news – again a dearth of buyers was more to blame than a surge in selling
Year-to-date net inflows reach $712m.
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She will join Global Advisors in December 2022 from New York Life Investment Management.
With Marija Janchovski, Head of Equities Trading – Asia Pacific, Vanguard Australia