IA Fund Flows Data: Investors Dump Equity Funds As Economic Uncertainty Continues

Investors took £4.5 billion out of equity funds in June 2022, according to data published today by the Investment Association (IA) – the highest monthly outflow of the year so far and the second highest on record.

June IA data shows largest fund outflows this year Equity funds saw the largest outflows of £2.3bn Responsible investment funds bucked the trend to take £71m in June

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Investors Pull Out From Equity Funds

Emma Wall, Head of Investment Analysis and Research, Hargreaves Lansdown

“Ever rising inflation, the continued atrocities in Ukraine, and Central Bank rate hikes across the world have all knocked investor confidence in June – leading to fund outflows of £4.5bn. This is the worst figure so far this year – and the second worst monthly outflow on record.

Equity funds were the least popular sector, as investors sought to reduce risk amidst the uncertainty. Global funds, which have been extremely popular over the past five years, were the worst hit. Mixed-asset funds also suffered, though those that target volatility were in inflow mode – one of the very few sectors attracting cash as investors prepare for yet more market jitters. Responsible investment funds also bucked the trend, taking £71m in the month of June.

July fund flow tables for Hargreaves Lansdown clients show that some optimism has returned in the last month, as markets regained some earlier losses, particularly tech and US markets. However, the most bought funds also include those with a focus on capital preservation showing that confidence remains low, and investors are steeling themselves for a bumpy ride.”

Top 20 Most Bought Funds July 2022 (Alphabetical order)

Artemis Global Income Artemis High Income Artemis Income Baillie Gifford American Fidelity Global Dividend Fidelity Global Technology FTF ClearBridge Global Infra Income Fundsmith Equity HL Multi-Manager Special Situations Trust HL Select Global Growth Shares JPMorgan Emerging Markets Jupiter Asian Income Jupiter Global Value Equity Pyrford Global Total Return Rathbone Global Opportunities Stewart Inv Indian Subcontinent Sustainability Troy Trojan Troy Trojan Global Income UBS Global Enhanced Equity Income VT Gravis Clean Energy Income

About Hargreaves Lansdown

Over 1.7 million clients trust us with £132.3 billion (as at 30 April 2022), making us the UK’s number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.

Updated on Aug 8, 2022, 11:00 am

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