(July 12): Retail investors withdrew £1.8 billion (US$2.3 billion or RM10.86 billion) from UK equity funds in May, the worst month on record for the unloved sector.
The figures add to a dismal trend for UK equity funds, which have seen eight years of continuous outflows, while underscoring the extent of the challenge facing the Labour government as it seeks to revitalise the country’s beleaguered capital markets. Since 2016, £54 billion has been withdrawn from UK equity funds by retail investors, according to Investment Association data, with £13.6 billion withdrawn last year alone.
The latest numbers coincide with the publication of the Financial Conduct Authority’s much-awaited overhaul of the UK’s listing rules, part of a concerted effort to draw more initial public offerings (IPOs) to London, following a dramatic drop in the number of new listings, and a spate of high-profile departures to markets such as New York.
The new…
