Wealth Adviser newsletter 06.05.22

A port in a storm

Research this week from global funds network Calastone finds that April saw UK equities funds experiencing record outflows of GBP836 million, with selling focused on riskier categories.
The firm writes that the outflow from UK-focused funds was broadly based. Two thirds of UK-focused equity funds saw outflows during the period, but those focused on mid-caps and smaller companies featured more prominently on the sell list.
Among the most heavily sold 20 funds, seven were in these categories, but none was among the 20 most heavily bought ones. Together these two categories of UK-focused equity funds accounted for two fifths of the net outflow from UK equities overall, a much larger share of fund flows than assets under management.
A final sobering point from Calastone - out of GBP49 billion invested in equities funds since January 2015, no net new money has flowed into UK-focused funds.
Edward Glyn, head of global markets at Calastone says: "Outflows from UK-focused funds make sense at present given the weak economic outlook, but we were surprised at just how negative sentiment was."
Beverly Chandler, managing editor, Wealth Adviser
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