Calastone: Index equity funds suffer worst outflows on record as inflation fears loom

Outflows of £709m

Index-tracking equity funds suffered their worst net outflows on record during October, at £709m, according to the latest report from Calastone, with global and UK-focused index funds seeing the largest redemptions of £716m and £226m respectively.

Outflows from passive funds were five times larger than the previous record of £156m seen in July this year. Investors selling out of passive vehicles meant savers cashed in a net £148m of their equity fund holdings during the month, despite the fact inflows into active equity portfolios totalled a net £561m. According to Calastone, inflows into passive funds had "easily outpaced" active funds almost every month for two and-a-half years until November 2020. During ten of the last 12 months, however, passives either saw smaller inflows than their active counterparts, or suffered outflo...