Turmoil Prompts Record Outflow from Equity Funds

Easy Money Tamps Down Volatility

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

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