Overview
- Calastone data show £3.6 billion exited global equity funds in October, the fifth straight month of withdrawals and £7.3 billion over the four months to October.
- UK-focused equity funds saw £1.2 billion in net outflows in October, while global funds shed a record £911 million and North American funds lost £649 million in their third-worst month on record.
- Roughly half of October’s equity outflows rotated into safer assets, including a record £955 million into money‑market funds and £589 million into fixed income funds.
- Calastone’s Edward Glyn pointed to two drivers: nerves over elevated US equity prices and concern about the 26 November budget’s tax implications.
- Policy uncertainty includes Treasury work on capital gains reforms, with reports of a potential exit tax and rate alignment, alongside investor unease about a possible AI-driven tech correction.