UK equity funds suffered £1bn net outflows in January despite the FTSE reaching record highs, according to Calastone’s Fund Flow Index.
After adding to equity funds over the closing months of 2024, investors began 2025 by pulling a net £640m from the asset class.
Alongside the UK, European funds saw net selling of £265m, though enthusiasm for the US remained with North American equities pulling in a net £576m. Asian funds also recorded net outflows.
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Edward Glyn, head of global markets at Calastone, said: “UK fund investors seem to have given the government’s fretful growth narrative a clear thumbs down. The UK stock market reached all-time highs in January, but investors merely took this as an opportunity to get out while the going was good.
“Meanwhile, political instability and increasing anxiety about the economy have put Europe back on the sell list…
