Calastone: ESG equity funds suffer worst ever outflows in May

£304m in outflows

ESG equity funds suffered £304m in outflows in May, the worst month on record and only the second month in five years where the sector experienced outflows, Calastone found.

In the face of increasing volatility and rising interest rates, flows into different sectors shifted rapidly throughout May, according to Calastone's monthly Fund Flow index. Money markets experienced their largest inflows in May since the Mini Budget, attracting £419m. The only other month where money market funds have seen such strong inflows was in March 2020. Edward Glyn, head of global markets at Calastone, said the bonds with short maturities the funds invest in are "typically among the least risky assets available", and are closely linked with interest rate levels. Calastone...