Turmoil in global markets prompted a new record flood of capital out of equity funds in September. The £2.36bn net outflow beat the previous record set in August by over a fifth and takes the net flight from equity funds to £6.63bn since the bear market began in January 2022. During the third quarter, the outflow reached £4.70bn, comfortably more than in the whole of 2016, which was previously the worst year on Calastone’s eight-year record.

Key highlights from this month’s FFI:

• Record £2.4bn outflow from equity funds in September – 2022 already worst year on record
• UK-focused equity funds hit hardest in September – now 16 consecutive months of outflows
• Every geography saw outflows, with records broken for US and emerging market equities
• Active funds now being hit harder than passive funds after resilient first half of 2022
• ESG equities suffer first outflow in 3.5 years
• Record outflows from mixed assets and renewed loss of appetite for property

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

Source: Calastone