UK investors pulled a record net £1.9bn from equity funds, easily beating the previous records set in June and July 2016 following the Brexit vote, but sector and ESG funds experienced inflows.
According to Calastone's latest Fund Flow index, equity funds suffered over £2.3bn in withdrawals during the height of the bear-market rally that began in mid-July and ran out of steam in the middle of August. As global stock markets rose sharply over the period, UK investors decided to sell their equity fund holdings into the rally, withdrawing £251m in the second half of July all the way up to £2.1bn between August 1st and August 17th. "Markets are absorbing the likelihood that inflation will be extremely pernicious and persistent, meaning that interest rates will stay higher for l...
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