Flows into equity funds slowed in January as coronavirus fears ramped up

Active funds took 'brunt of selling' during the month

Equity fund inflows fell sharply in January, with net flows down by more than two-thirds to £618m as the coronavirus outbreak created "a month of two halves", according to funds network Calastone.

Its Fund Flow Index for January showed two-fifths of new capital flowed into UK equity funds, although inflows into UK equities declined by three quarters month-on-month. The index revealed that in the first half of the month, before the virus had begun to be reported, equity funds saw £475m of inflows, which slowed to £141m in the second half of the month as "investors pared back the optimism that more positive news on the global economy had instilled in December", Calastone said. Record £2.2bn pulled from UK property funds in 2019 Asia-focused funds were the worst hit during Janu...