Investors are still pulling money from UK equity funds, despite a global surge in inflows.
Figures from Calastone, the largest global funds network, show that despite record equity fund inflows of £27bn in 2024, investors pulled £9.56bn from UK-focused equity funds. This is the worst relative performance between UK funds and the rest of the sector on record.
Edward Glyn, head of global markets at Calastone, said that £45bn has been withdrawn from UK equity funds since 2015, adding that the funds are being “shunned by investors”.
“UK equity valuations are clearly cheap, but investors are capitulating, seemingly giving up hope that a long-awaited re-rating will occur,” he said.
US and passives shine
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