Investors sell down UK equity funds in January despite FTSE 100 rally

Third-worst month on record

UK equity funds suffered their third-worst months of outflows on record in January, while fixed income funds saw their second highest inflow, the latest Fund Flow Index from Calastone found.

Investors sold down a net £868m from UK equity funds last month. For every £1 of sell orders of UK-focused funds, there were only 59p of buy orders. No other fund sector saw such a considerable mismatch, and not a single trading day saw net buying. UK equity funds have seen 20 consecutive months of outflows. Since 2015, investors have sold £7.3bn of UK-focused funds and bought £58bn of international ones.  Investor forum warns of UK equities 'diminished importance' Edward Glyn, head of global markets at Calastone, said: "The combination of January's near record high for the UK mark...