Equities suffer in January as nervous investors take £3bn off the table

'Wait and see' approach

January was a disappointing month for asset managers as cautious investors withdrew £3bn from markets, according to figures from the Investment Association (IA), rowing back on a positive end of year.

The January outflows more than reversed the £2.3bn inflows recorded in December 2024 and also bucked the positive flows in November. Active funds in general, and equities, particularly UK equities, were hardest hit. UK equity funds suffer ninth-year of outflows in 2024 Investors were reacting to high levels of uncertainty that began the year, the IA said, adopting a ‘wait and see' approach. Factors including confusion over interest rate cuts, the impact of then-anticipated tariffs from the newly elected President Trump and a market shake up with the blasting onto the scene of De...