UK-focused funds suffered their worst ever quarter for net flows with investors pulling £1.19bn in March, despite the UK market outperforming the global index from a returns perspective, according to Calastone’s latest Fund Flow Index.
In the first quarter as a whole, investors have redeemed £3.48bn from UK equity funds.
Market volatility did not deter UK investors from piling into the US stockmarket, with North American equities posting their third-best month on record for fund flows despite the S&P500 falling 4% in the month.
Calastone’s latest Fund Flow Index recorded £1.77bn net inflows for North American equity funds, while trading volumes also jumped.
European equity funds also recorded £217m net inflows, with the European market posting a strong first quarter relative to the US.
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