British investors pulled £449million out of UK equities in May as the FTSE 100’s strong recent performance failed to drum up renewed appetite for London stocks.
It was the smallest outflow since the end of last year and half the average seen during a dismal run for UK markets over the past three years. But nearly £4.5billion has been withdrawn from London-listed shares this year, says funds network Calastone.
Edward Glyn, head of global markets at Calastone, said that while the UK market has been flirting with all-time highs, the recovery ‘has not been enough to spur new buyers to reappraise the prospects for UK equities’.
He added: ‘The relentless outflows represented a clear capitulation on hopes for UK shares. It’s too soon to call an end to this trend, but a less negative narrative is a necessary first step.’
Overall flows into all equity funds remained positive in May but were sharply lower than in April, dropping by a billion to £525million.
Calastone said it was a strong month for European funds but investors were more cautious on US and other global stocks. World markets were boosted by Donald Trump’s retreat from his most extreme tariff positions, Glyn said.
Drained: Nearly £4.5bn has been withdrawn from London-listed shares this year, says funds network Calastone
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
InvestEngine
InvestEngine
Account and trading fee-free ETF investing
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .