UK investors continued dumping equities for a record sixth straight month, withdrawing £3B ($4B) from equity funds in November, according to Calastone.
Total outflows over six months now reach £10.4B ($13.87B) — the worst consistent selling trend ever recorded.
Fears that the government would cut tax advantages for investments drove much of the selling pressure ahead of the UK budget.
📉 Daily flows flipped suddenly:
- Net selling occurred almost every day before the budget.
- Outflows stopped on Nov 26, the day Finance Minister Rachel Reeves delivered a budget that raised some taxes but avoided the most feared measures.
- Final three trading days saw inflows return.
📈 Shift toward safer assets:
- Money market funds saw a record £1.3B inflow.
- Fixed income funds added £643M as investors sought stability.
“Never have we seen such consistent or large-scale selling before,” said Edward Glyn, Calastone’s head of global markets.