US equity funds saw the highest outflow on record in February, according to data from The Investment Association (IA), while UK equity funds posted their largest outflow since 2008.
The prospect of higher interest rates, a weakening dollar, and the appeal of regions earlier into their recovery phase meant investors pulled out of North American equity funds. The sector saw net retail outflows of £356m last month, the highest since records began in January 1992. Investors also sold UK equity positions as the upcoming general election, and its potential to bring turmoil to the markets, raised concerns. The asset class saw net retail outflow of £530m in February, the largest outflow since January 2008. Instead, investors favoured regions in the earlier phases of reco...
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