UK investors withdrew £858m from equity funds in September, according to the latest fund flow index from Calastone. This marks the fifteenth month of outflows in the last sixteen, with equities suffering total outflows of £5.4bn since the start of the year.
Amid these wider outflows, emerging market equities attracted £133m, as investors reportedly sought opportunities away from concentrated developed markets. Edward Glyn, head of global markets at Calastone, stated that inflows to emerging markets suggest a search for diversification, offering exposure to economies and valuations that differ from the US market.
UK equity funds continued to see significant withdrawals, with investors pulling out £708m in September. This represents the sixty-third month of outflows in the last 65, totalling £47.7bn. The domestic market's downturn also extended to North American equity funds, which lost £124m, their largest outflows since November 2025.
Asian equity funds lost £371m, their second-worst month on record, while European, Japanese, and Chinese sector-focused funds also reported net selling. Investors turned to fixed income, with bond funds reporting inflows of £655m, and high-yield funds attracting £421m.