UK investors

UK investors commit £2.2bn to funds in November

UK investors committed a net £2.2bn to funds in November, more than double the total in October, according to new research.

The latest Calastone fund flows index (FFI) revealed that fund inflows rebounded in November as UK investors took advantage of the sharp fall in global stock markets at the end of October.

This saw Calastone’s FFI reach 54, up from the two-year low of 51.6 in October when steep reversals hit global financial markets across a variety of asset classes.

Despite the growth, the index in November is still below its long-run average, and its average for the last 12 months.

Total trading volumes (the sum of buying and selling) were also below the average for the last 12 months, down by a 10th.

Property funds saw a second consecutive month of outflows, taking net sales to £208m since the beginning of October, the worst performance since the aftermath of the Brexit referendum in 2016.

Edward Glyn, head of global markets at Calastone, said that November had been a good month for fund flows, but investors were much more skittish than the positive overall figures for the month suggest.

“We expect Q4 2018 to see the weakest fund flows since 2016.

“Asset prices are currently very volatile, so investors are watching the markets day by day, and dipping in and out in reaction to fast-changing news.

“Timing the markets is tricky even for professionals, but investors are clearly giving it a go to try to lock in short-term profits.

 “Meanwhile, news flow for the real estate sector has been very poor recently amid concerns about asset values, culminating in the collapse of Intu Properties takeover talks.

“That seems to be making investors in property funds nervous and is prompting outflows.”

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