Equity funds see record outflows as crisis grows

Equity funds experienced their highest ever outflows of retail money in November as investors pulled out their cash in droves amid the ongoing eurozone crisis.

In total investors pulled £864m out of equity funds in the month, compared to a monthly average inflow of £506m for the previous 12 months, according to the Investment Management Association (IMA). Losses were concentrated across the equity sectors, particularly within developed market sectors. Specialist, North America, Europe excluding UK, UK Smaller Companies and UK All Companies accounted for a combined net outflow of £728m. UK Smaller Companies funds saw their greatest monthly outflow since July 2006. Richard Saunders, chief executive at the IMA, said the outflows were "sig...