City Of London
Retail Investors Pull Record £1.8 Billion From UK Equity Funds
- Outflows in May highlight sluggish performance for UK stocks
- Rise of passive investment, global benchmarking pose challenge
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Retail investors withdrew £1.8 billion ($2.3 billion) from UK equity funds in May, the worst month on record for the unloved sector.
The figures add to a dismal trend for UK equity funds, which have seen eight years of continuous outflows, while underscoring the extent of the challenge facing the Labour government as it seeks to revitalize the country’s beleaguered capital markets. Since 2016, £54 billion has been withdrawn from UK equity funds by retail investors, according to Investment Association data, with £13.6 billion withdrawn last year alone.