Various data points highlight the reduction in demand for UK equity funds in recent years.
But is this trend a healthy realignment reflecting the reality of the world we live in, or are advisers and their clients missing a trick by neglecting the home market?
The scale of the desertion can be seen in figures from the Investment Association, which show that £20bn has been withdrawn from UK open-ended funds by both institutional and retail clients in the 2024 calendar year, while the number of open-ended funds focused on UK equities dropped from 357 at the end of 2022 to 309 at the end of 2024.
The data is even more stark in the investment trust world, more the preserve of the private and advised client than the institutional one, where the number of trusts solely or principally focused on investing in UK equities has fallen to 49, from 55 three years ago.
Those trusts have combined assets of £19.79bn, compared with £22.8bn three…
