When we reported on asset flows last month, we noted it had been the worst month on record since the mass outflows of March 2020. This time, flows are even higher.
Morningstar data reveals redemptions from UK-domiciled open-end funds increased to £5.3 billion in June. Investor sentiment has soured towards equity strategies in particular, where we’ve seen £3.9 billion of outflows. Over half of this (£2.6 billion) was from UK equity funds.
Combine May and June and we’ve seen the worst two-month period since December 2018: £8.8 billion versus £10.4 billion.
Earlier this year, fixed-income securities were popular among investors, with strong subscriptions. But with the recent interest-rate increases, funds in this category, as well as allocation strategies holding fixed income, have generally not performed well.
Investors have not withdrawn as much from these funds as from equity strategies, but with only £12 million added, flows are muted compared to the recent past. Moreover, allocation funds have lost half a billion, the second largest outflow if we exclude money…
