British investors funneled a record £11.4 billion ($14.5 billion) into equity funds in the first six months of 2024, driven by expectations of further central bank interest rate cuts, according to data from fund network Calastone. This marks the highest half-year inflow recorded by Calastone in its ten-year history.
In June alone, UK investors added £1.7 billion to equities, continuing a strong trend of inflows. “Hopes for cheaper money after the painful rate squeeze of the last two-and-a-half years are the clear driver of record flows into equity funds so far this year,” said Edward Glyn, head of global markets at Calastone.
Global equity funds emerged as the most favored category in June, attracting £1.4 billion. European equities also saw significant interest, absorbing £714 million. Conversely, North American equity funds experienced a slowdown, with minor outflows of less than £1 million. Although outflows from UK equity funds persisted, they decreased to £522 million, the smallest outflow this year.
Additionally, investors withdrew money from bond funds for the second consecutive month, reflecting a broader shift towards riskier assets amid the anticipation of easing monetary policies.
