Outflows persisted across most UK fund asset classes last month and equity strategies extended their losses, having not seen a quarter of net inflows since the third quarter of 2021.
Morningstar’s monthly UK Fund Flows report for March, published today, also found that:
- Redemptions from passive strategies were less severe compared with active strategies;
- Global and US large-cap equity strategies attracted a combined inflow of £1.6 billion in March, though these were partially offset by slight outflows from value-orientated funds;
- Passive funds continue to dominate the top five inflows, with four of them featured in March, mirroring trends seen in prior months.
Giovanni Cafaro, Morningstar research manager, analyst and author of the report said: “The persistence of outflows from equity strategies continued to be driven by flows out of UK equity categories, which experienced a net outflow of £5.6bn during Q1.
“This was however in part offset by inflows into Japan, European and global emerging markets equity categories, in order of magnitude.”
“Outflows from fixed income funds were partly offset by investors’ continued interest in global corporate funds, which gathered £436m in the month.”
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