British stock funds have experienced nine consecutive years of outflows, totaling 45 billion in losses.
08/01/2025
GMT Eight
Investors have withdrawn funds from UK-focused equity funds for the ninth consecutive year, as they continue to flee underperforming markets and find higher returns in US tech stocks.
According to data from fund management service provider Calastone, net outflows reached 9.6 billion (or $12 billion) last year, while global funds saw inflows of 19.5 billion.
This statistic highlights the dire situation of the UK stock market. As some companies leave the London Stock Exchange for the deeper pockets of New York, the London market is shrinking, with others being acquired due to low valuations. The country also lacks tech companies that can drive other markets to new heights.
Since 2016, a total of 45 billion has been withdrawn from UK equity funds.
Earlier this month, Abrdn Plc stated that UK savers are the least willing to invest in the stock market among G7 economies. The asset management company reported in a study that only 8% of UK adults allocate their wealth to stocks and mutual funds, with most savings going towards real estate, pensions, and cash. In comparison, the proportion is 33% in the US.
According to Calastone's data, North American equity funds attracted 11.9 billion in inflows in 2024.