UK equity market sees resurgence as outflows reach lowest rate in three years

Calastone Fund Flow Index

Outflows from UK-focused equity funds contracted to their lowest level in three years in July amid growing optimism of an increasingly renascent UK market.

In July, the sell-off of UK-focused funds shrank to £207m according to Calastone's latest Fund Flow index.  This slackening of capital exodus marked the lowest outflow figure since August 2021, when investors most recently began to turn their back on the UK equity market. UK equity funds suffer highest monthly outflow on record Following a sweeping Labour victory in the UK election early in July, investors added £59m into UK-focused holdings, marking the largest one-day influx into UK equity funds over the month.  A fall in selling by investors to a tenth below the monthly avera...