UK equities suffer heavy sell-off in September

Investors "spooked" by multiple crises

Investors sold out of UK equities en masse in September as ongoing uncertainty in the country shook confidence, but ESG funds managed to stay buoyant.

Multiple crises "spooked" investors, who withdrew a net £567m from UK equity funds during the month, according to the latest fund flow report from Calastone. Active UK funds bore the brunt, accounting for 98% of the overall outflow for UK-focused funds in September, as the country struggled to grapple with issues such as a supply chain crisis, inflation, and panic-buying at petrol stations. Despite the heavy sell-off of UK equity funds, ESG funds continued to enjoy inflows, the fund transaction network noted. It was non-ESG funds that suffered the redemptions, it said. IA fund flow...