UK equity funds suffer ninth-year of outflows in 2024

Passive equity mandates taking lead

UK-focused equity funds bled £9.5bn last year, their worst year relative to the wider market, according to Calastone's Fund Flow index.

Although this was less than the near £12bn pulled from the sector in 2023, it was the "worst relative performance seen by the unloved UK-equity sector", Calastone found as other sectors took in mammoth sums. Meanwhile, net inflows into equity funds globally surged to an all-time high in 2024, hitting £27.2bn and significantly overtaking the previous record of £19.8bn in 2021. Higher yields prompt investors to pour into fixed income funds as UK equities break outflow spell Passive mandates received the highest volume of net positive investments, with investors committing £29.6bn in ...