UK equity funds recorded another month of outflows in August as investors shifted capital towards cash and bonds. A net £601m was withdrawn from UK stock funds, contributing to a wider £315m net outflow across global equity strategies.
This marks the fourth consecutive month of net selling globally and the 14th month of equity outflows in the last 15, according to the latest Fund Flow Index from Calastone. Since June 2025, a total of £15.16bn has been pulled from equity funds.
Edward Glyn, head of global markets at Calastone, stated that selling in the UK has been intensified by caution regarding potential tax increases in the October Budget. Chancellor John Healey did not dismiss speculation about tax hikes in a speech on Monday.
In August, money market funds saw their strongest inflows since November, taking in a net £364m. Bond funds also attracted £407m in net new capital, marking their fourth consecutive month of positive inflows.