UK investors flood to equity funds in March Apr 08, 2021 By Funds Europe
UK investors added record levels of capital to equity funds in March as they bet on the post-Covid economic recovery, according to the latest data from funds transaction network Calastone.
In total, UK investors committed a net £2.96 billion (€3.42 billion) to equity funds surpassing the previous record seen in the post-crash bounce of April 2020 by over a tenth, the firm said.
UK-focused equity funds saw a net £610 million added to holdings marking a startling turnaround for the asset class, while global equity funds took in £1.84 billion. Meanwhile, global ESG equity funds attracted new capital to the tune of £1.15 billion.
ESG leads UK retail investors as they return to equities
UK equity funds saw inflows for the first time in eight months during February, which is seen as a sign of recovery from Covid-19’s impact on markets.
Latest fund inflow data also suggests records being set for ESG investment funds, according to two separate pieces of research.
However, the return to UK equities was described as “tentative” with UK investors adding £145 million to their holdings, which followed outflows of £2.2 billion in the previous eight months, according to Calastone, a fund transaction network.
Calastone also cautioned that in the final week of February, UK equity funds saw £19 million of outflows.
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