“Unloved” UK equity funds suffered outflows for the third year in a row in 2023, according to fund network Calastone.
The company’s latest fund flow index showed overall there were £1.19bn of inflows into equity funds, but this was not enough to prevent annual outflows due to the outflows suffered by UK funds.
An update from the company read: “Among geographical categories, only perennially unloved UK-focused equity funds saw outflows, though the £418mn withdrawn was well below the monthly average for 2023 (-£667mn).”
Calastone put this down to volatile market and economic conditions which resulted in outflows in eight months in 2023.
It added: “Some categories have fared worse than others – 2023 marked the third consecutive year, and December the 31st consecutive month of outflows from UK-focused equity funds.
“Without the £8.01bn of outflows from UK equities in 2023, all other kinds of equity funds between…
