UK investors displayed a strong preference for US equities in March, injecting £2.30 billion into equity funds and contributing to a robust start for Q1 2024. According to Calastone’s Fund Flow Index (FFI), this surge propelled total inflows to £6.97 billion since January.
North American funds emerged as the top choice, attracting an unprecedented £5.72 billion in the first quarter alone. This marked a significant shift in investment strategy towards transatlantic markets, surpassing inflows from the previous nine years combined.
While North American funds thrived, global equity and emerging markets also experienced solid inflows, albeit with a slowdown in European funds. Conversely, UK domestic equity funds witnessed outflows, reaching their highest levels since February 2023.
Despite this trend, socially responsible investing gained traction, with ESG equity funds seeing sustained inflows. However, non-ESG equity funds attracted larger inflows in March, indicating diverse investor preferences within the UK market.
Edward Glyn, head of global markets at Calastone, highlighted the surge in global equity markets since October. He noted concerns among UK investors regarding the growth prospects of UK equities compared to other regions. Glyn emphasized the resurgence of profits in the US as a significant driver of fund inflows and higher share prices.
Fixed income fund inflows surged to their highest level since June 2023, with investors injecting £460 million. However, mixed asset funds and the property sector sustained outflows amidst this environment.
Glyn pointed out challenges faced by bond markets in 2024, including deferred hopes for rate cuts and rising yields. These conditions attracted investors seeking high income and potential capital gains amidst anticipation of future rate declines.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
5th April, 2024
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023