UK Equity Funds See £692M Outflows as Investors Flee Uncertainty
Institutional and retail investors withdrew a combined £692 million from UK-focused equity funds in September, marking a significant increase from the previous month's £657 million. This move comes amidst economic uncertainty and shifts in monetary policy.
The outflow volume surge was driven by investors reacting to sluggish UK growth and apprehensions about the upcoming Budget. Despite some investors previously finding value in the UK's cheaply-priced stocks, the exodus from UK stocks has resumed and gathered pace in September 2022. This trend is not new, with investors dumping UK stocks for over four years, making the outflows seem seemingly unstoppable.
Meanwhile, the London stock market hit an intra-day record high of 9516 in September before closing at 9479.14, indicating a mixed performance despite the increased outflows.
The September outflows, totalling £692 million, reflect investors' continued unease with the UK's economic prospects. The upcoming Budget is expected to provide further clarity on the government's fiscal plans, which may influence future investment decisions.
