UK-focused equity funds were pummelled with more large outflows in May. May’s flight for the exits extended outflows from UK-focused funds to a record twelve consecutive months, longer than for any other segment of the market.

Latest in from our Fund Flow Index: UK-focused #equityfunds were pummelled with more large outflows in May – extending outflows from UK-focused funds to a record twelve consecutive months, longer than for any other segment of the market: https://t.co/MFjX3imsSk pic.twitter.com/ZARTwMlyTA

— Calastone (@CalastoneLtd) June 7, 2022

Key highlights from this month’s FFI:

• May saw net outflows of £826m for UK-focused equity funds – the three worst months on record for UK equity funds have been in 2022
• UK smaller companies accounted for 1/6^th of the May outflow – double their share of fund values
• Income funds represent a safe haven in inflationary times and enjoyed inflows in May
• Across all equity funds, outflows were £310m
• Year-to-date ‘regular’ equity funds have shed £3.7bn but ESG funds have garnered a net £2.8bn
• Property funds, also commonly viewed as an inflation hedge, saw outflows fall to their lowest level in almost four years

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

Source: Calastone