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UK Equity Funds Post Record Six-Month £10.39bn Exodus as Pre‑Budget Selling Finally Stalls

Calastone links the withdrawals to anxiety over potential pension lump‑sum limits plus higher capital gains, dividend and savings taxes.

Overview

  • Investors pulled £3.02bn from equity funds in November, the second‑worst month on record after October’s £3.63bn.
  • Selling dominated on almost every day before the 26 November Budget, then halted abruptly with modest inflows in the final three sessions of the month.
  • UK‑focused equity funds saw the largest November outflows at a net £847m, while Europe‑focused funds attracted about £78m.
  • Cash rotated to perceived safe havens, including £1.25bn into money‑market funds and £643m into fixed‑income products.
  • Calastone’s Edward Glyn blamed a destabilising political narrative, and Peel Hunt’s Charles Hall said a meaningful recovery in December looks unlikely.