UK investors return to equities for the first time in six months
Last month, UK investors returned to equities for the first time in half a year, as asset managers overhauled their portfolios, the Financial Times reported today.
Figures from funds network Calastone showed UK retail investors added a net £449m to equity funds last month.
Edward Glyn, Calastone’s head of global markets said: “November saw good news on inflation in the US, the UK and in Europe, which investors increasingly hope will stay the hand of policymakers deciding on the next move for rates.
“Equity prices duly rebounded during the month . . . [which] has tempted investors back into equity funds, favouring those parts of the world with better growth characteristics, like the US, and those that benefit when US interest rates start to fall, like emerging markets.”
The report said the numbers suggest a positive macroeconomic picture led investors to deploy some dry powder.
But overall, investors have remained cautious.
Separate data from Morningstar showed UK-domiciled money market funds held more than £1tn in September, while Calastone reported DIY investors added more than £500mn to money market funds last month – a grand total of £4bn year-to-date.