Equity funds gather £449m inflows after six months of net selling
The inflows follow six months of net selling for equity funds, which lost £4.5bn between May and October 2023.
The inflows follow six months of net selling for equity funds, losing £4.5bn between May and October 2023.
Similarly, falling bond yields in November after a continuous six-month rise drove capital back to fixed income funds for the first time in four months, with investors adding £256m to their holdings. But Calastone noted investors remain cautious despite the uptick in equities and fixed income flows.
Money market funds attracted more than double the amount of capital hat fixed income funds received in November, with £525m of net inflows. In the year to date, they have gathered £4.1bn of cash, more than the previous eight years combined (£3.5m).
Equity funds suffer largest outflows since Mini Budget as ESG funds shed £700m
Calastone also found that buying was selective in November, with investors adding a record £414m to emerging markets funds, which have had net inflows for four months in a row.
North American funds also registered inflows thanks to the continued strength of the US economy, gathering £481m of new capital, making November their best month since June 2022, Calastone said.
Japanese funds also attracted modest inflows of £111m, with the FFI noting this accounted for almost £9 in £10 of net cash flowing into specialist regional funds.
Yet Asia-Pacific, Europe, UK, income and infrastructure funds all suffered outflows over the month. APAC funds accelerated their net selling to their second highest level on record at £229m, alongside sector funds which had their worst month ever with £296m of outflows, mostly driven by the selling of infrastructure funds.
Outflows continued for European and UK
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