According to funds network Calastone, UK-focused funds experienced their sixth-largest monthly net withdrawals on record in January, with British investors pulling a net 640 million pounds ($799 million) from equity funds, breaking a lengthy run of inflows.
Following a surge of optimism in late 2024, when investors flocked to stock, bond, and mixed asset funds, Calastone reported that UK investors began 2025 "in a more pessimistic mood."
Despite British stocks reaching all-time highs, funds with a focus on the UK lost 1.07 billion pounds, according to Calastone. According to the report, North American stocks saw 576 million pounds of net fresh money, while European and Asian funds had net withdrawals as well.
Edward Glyn, head of global markets at Calastone, said in a statement, "The UK stock market hit all-time highs in January, but investors simply took this as an opportunity to get out while the going was good."
However, it seems that nothing can dampen the excitement around US stocks. Glyn continued, "Even the DeepSeek AI shock that occurred late in the month sparked appetite rather than fear." She pointed out that North American equities funds recorded their greatest day of the month for net inflows the day after the DeepSeek-induced selloff.
As government bond yields rose, inflows into fixed income funds fell precipitously before the market calmed down later in January, according to Calastone.
$1 is equal to 0.8015 pounds.
Following a surge of optimism in late 2024, when investors flocked to stock, bond, and mixed asset funds, Calastone reported that UK investors began 2025 "in a more pessimistic mood."
Despite British stocks reaching all-time highs, funds with a focus on the UK lost 1.07 billion pounds, according to Calastone. According to the report, North American stocks saw 576 million pounds of net fresh money, while European and Asian funds had net withdrawals as well.
Edward Glyn, head of global markets at Calastone, said in a statement, "The UK stock market hit all-time highs in January, but investors simply took this as an opportunity to get out while the going was good."
However, it seems that nothing can dampen the excitement around US stocks. Glyn continued, "Even the DeepSeek AI shock that occurred late in the month sparked appetite rather than fear." She pointed out that North American equities funds recorded their greatest day of the month for net inflows the day after the DeepSeek-induced selloff.
As government bond yields rose, inflows into fixed income funds fell precipitously before the market calmed down later in January, according to Calastone.
$1 is equal to 0.8015 pounds.
0 Comments