Investors sold a record 8.38 billion pounds ($10 billion) worth of UK-focused equity funds last year, shunning Britain as the country braces for the worst recession among major economies, a global funds network said.
Calastone said on Thursday that investment fund flows in 2022 were the weakest in at least eight years, with 6.29 billion pounds pulled from equity funds as the war in Ukraine helped to drive record inflation and interest rate hikes.
Fleeing into cash and fund categories perceived to be lower-risk, investors also sold a record 1.17 billion of North American funds – the first year of outflows since 2016. Exits from European equity funds hit 2.65 billion pounds, while Asia-Pacific funds saw 1 billion pounds of withdrawals.
Calastone said hopes that rate rises across the globe might be tapering off prompted tentative buying in November and December, although investors focused in part on global ESG equity funds and continued to shun UK-focused equities.
This report’s information was first seen on REUTERS; to read more, click this link.
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