Increased investor confidence in equity funds over the last few months has been evidenced by a leading Index*, with UK investors at their most bullish in almost three years.
Equity fund inflows reached £2.01bn in January, one of the top ten months on record and the highest since April 2021. In addition, the January Index reported:
• US equity funds had record inflows of £1.04bn
• European equity funds had their third best month on record with an inflow of £471m
• Weak news from China meant outflows from Asia Pacific funds for a ninth consecutive month
• ESG funds had record inflows of £1.63bn. It’s likely to be too soon to identify this as a trend after months of negativity
• Inflows to safe-haven money market funds slowed to a trickle (£56m) after months of strong buying.
*Calastone, 2024
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