February worst month for European equities since July 2020

Outflows of £604m in three days

February was the worst month for equity funds since July 2020, as capital flowed out of products in response to Russia’s invasion of Ukraine, according to the latest Calastone survey.

Investors abandoned the region, while there was a slight increase in sellers, and inflows fell to £42m over the month, 96% lower than the average monthly inflow over the last year, representing a 79% month-on-month drop compared to January. According to Calastone, funds had inflows of £646m up until 23 February, though as Russia invaded, investors withdrew £604m during the last three days of trading. Head of global markets at Calastone, Edward Glyn, said: "Investors have a lot to worry them at present. Stock markets have certainly fallen since the Russian army invaded Ukraine, but the...