Calastone: Equity flows reach record levels in 2021 but property continues to suffer

UK equities see outflows

Equity funds saw strong inflows in December as hopes that Omicron’s impact would be less severe than previous Covid waves saw a “flurry of optimism" among investors bringing total equity flows to record levels for the year, the latest data from Calastone shows.

UK savers added a net £1bn to their equity holdings in December doubling the asset class's month-on-month flows. Following December's positive performance, equity fund inflows reached a record net £14.2bn in 2021, according to the fund transaction network. The last high point for equity funds was back in 2015, when inflows reached £11.6bn for the year. Edward Glyn, head of global markets at Calastone, said: "Having paused in late November to consider the possible impact of the Omicron wave of Covid 19, investors have so far cautiously judged that its impact will be significantly less ...