Calastone: Investors pull £662m from equities in June

investmentweek.co.uk:

'Fixed income funds and their money market cousins have not looked so attractive since before the global financial crisis.'

Equities suffered the biggest outflows over the month at £662m, followed by £384m being pulled from mixed asset funds and £79m outflows from property strategies.

The outflows from equity funds in June were the largest since September 2022, according to Calastone. June 2023 also marked one of the ten worst months for equity outflows on the company's record.

Calastone: ESG equity funds suffer worst ever outflows in May

UK equity funds suffered the biggest outflows in June of around £612m, marking the 25th consecutive month of net-selling, Calastone noted.

North American equity funds and equity income strategies also suffered significant losses at £542m and £324m, respectively, their worst month since September 2021.

Global equity funds, however, continued to attract new capital, alongside emerging markets, which have had strong inflows all year.

Investors have also pulled money from ESG funds in June after a bearish May, Calastone found, taking £369m from the sector — its worst month on record and only the third month in the last four years to record outflows. The selling was concentrated on North American and UK ESG funds.

Edward Glyn, head of global markets at Calastone, said: «In the equity asset class, investors have increasingly focused their buying on global equity funds in recent years. Inflows of £50bn since 2015 have been funded by sales of UK, European and income funds in particular, as well as newly saved capital.

»Alongside a structural investor preference for global funds, from time-to-time different regions come into favour. Emerging markets funds are having just such a moment. They