Fixed income funds suffer first net redemptions since October 2023

Second-worst figure on record

Investors withdrew capital from fixed income funds for the first time since October 2023, reversing the positive sentiment the asset class had enjoyed of late, according to Calastone’s Fund Flow index.

Capitulation on the bond markets was heavy, with investors pulling a net £643m from funds, the second-worst figure on record, only beaten by March 2020. UK-focused equity funds endured the same fate, also chalking up a second-worst month on record, as a net £1.11bn exited the space. The outflows are beaten only by June 2022's £1.14bn figure, which marks the worst month to date. According to the report, actively managed funds suffered the brunt of the UK equity withdrawals, shedding £792m over the month. Inflows into North American funds fell sharply but remained positive last month...