Investors move cash from UK equity funds to US, Asia and global funds

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October was the fourth-worst month on record for UK-focused equity funds, while ESG funds and trackers continued to attract investors inflows, according to fresh data on Wednesday

Outflows from UK-focused funds totalled £358mln last month, prompted by increased coronavirus infection rates and Brexit tensions, funds network Calastone said, with another £763mln leaving income funds, which are also heavily invested in UK equities.

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This means both UK equity and income funds both recorded their fifth consecutive months of outflows.

Tracking money flowing from IFAs, platforms and institutions, Calastone says its network processing more than two thirds of UK fund flows each month.

October also saw small net outflows from European equity funds, while funds focused on North America, Asia and those with a global outlook, all enjoyed positive inflows.

Comparing passive and active funds, investors poured £378mln of new capital into equity index funds, while active equity funds shed £460mln.

Meanwhile, if comparing equity funds with an ESG focus with those that do not, Calastone calculated that it was a £542mln positive result for the woke investors compared to £625mln of outflows for non-ESG funds.

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