British investors have withdrawn a record £7.4 billion ($9.9 billion) from equity funds since June — marking the longest streak of monthly net selling since the Brexit vote in 2016, according to new data from Calastone.
The selloff highlights growing caution among UK investors amid:
- 📈 Stretched global stock valuations
- ⚖️ Uncertainty ahead of the UK budget and potential tax changes on investments
- 🌍 A global rotation toward safer assets, echoed by similar moves from U.S. private clients
🔹 Key Data Points
- October 2025: UK investors dumped a record £3.6 billion in stocks.
- Money market funds: Recorded £955 million in inflows, the highest ever.
- Fixed income funds: Added £589 million, as investors sought stability.
- Equity categories: Net selling across all segments — Global, North American, Technology, and UK equities.
“Investors are questioning whether high global stock prices are sustainable,” said Edward Glyn, Head of Global Markets at Calastone.
This mirrors Bank of America’s report last week, showing private clients sold $12 billion in equities over the past eight weeks — the fastest pace of outflows in a year.
🔹 Investor Sentiment Shift
The trend signals a flight to safety as markets face:
- Anticipation of tighter fiscal policy
- Rate uncertainty despite easing inflation
- Profit-taking after record market highs in AI and U.S. tech sectors
“What we’re witnessing is a classic pre-budget repositioning — investors locking in gains and reallocating to yield and liquidity,” said one London-based fund strategist.