British Investors Withdraw $799 Million from Equity Funds in January
UK investors withdrew a net £640 million ($799 million) from equity funds in January, ending a period of inflows and marking the sixth-largest net outflow from UK-focused funds on record, according to data from funds network Calastone.
Amidst bullish sentiment in late 2024, investors invested heavily in equity, bond, and mixed asset funds. However, Calastone reports that UK investors began 2025 with a more cautious outlook.
UK-focused funds experienced net outflows of £1.07 billion, despite British shares reaching record highs. European and Asian funds also faced net withdrawals, while North American stocks attracted a net inflow of £576 million.
"While the UK stock market reached all-time highs in January, investors viewed it as an opportunity to cash out," stated Edward Glyn, head of global markets at Calastone.
Despite concerns and market shocks, demand for US stocks remained strong. Even a DeepSeek AI-triggered selloff "spurred appetite rather than fear," according to Glyn, with North American equity funds experiencing their best day of net inflows after the incident.
Fixed income funds witnessed a significant decline in inflows as government bond yields surged, but the market stabilized later in January.