British investors added a record 11.4 billion pounds ($14.5 billion) into equity funds over the first six months of 2024, as the prospect of further central bank interest rate cuts fueled demand for riskier assets, according to fund network Calastone.
The flows into stocks were the highest for a half-year period in Calastone’s 10-year records. In June alone, UK investors added 1.7 billion pounds to equities, continuing a strong run 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 popular category in June, with net inflows of 1.4 billion pounds. European equities also saw significant investments, absorbing 714 million pounds during the period.
While North American equity funds experienced a slowdown in flows, with slim outflows of under 1 million pounds, UK equity funds saw reduced outflows of 522 million pounds – marking the smallest outflow this year.
Meanwhile, investors withdrew from bond funds for the second consecutive month, pulling 471 million pounds in June, bringing the two-month total to 1.1 billion pounds.
The data highlights a growing appetite among UK investors for equities as they seek opportunities amid the changing economic landscape. This surge in investments reflects a shift in sentiment driven by expectations of favorable monetary policies in the future.
