August saw UK-based investors desert equity funds in the biggest monthly sell-off on record, according to the latest Fund Flow Index from Calastone, the largest global funds network.

The record net £1.93 billion outflow easily beat the previous records set in June and July 2016, when the Brexit vote prompted a net outflow of £1.54 billion and £1.56 billion respectively. The Calastone data shows that August’s equity fund sales were driven by a significant increase in selling activity rather than a drop-off in buy orders, indicating a decisive choice to exit holdings.

UK focused equity funds bore the brunt of the exits, shedding £759 million, the fifth worst month on record, said Calastone. It’s worth noting that the worst four monthly periods all came in 2022. UK investors have now pulled cash from domestically focused funds for a record 15 consecutive months.

Yet the exodus was widespread and not just focused on UK funds, with every geographical category of equity funds seeing outflows in August, the Calastone report shows. North American and Asia-Pacific both saw record drawdowns, at £426 million and £234 million respectively, with the latter linked to rising concerns over the Chinese economy and its effects on the rest of the region.

European-focused vehicles had their sixth worst month on record with a £419 million outflow, while even emerging markets funds, which have benefited strongly from inflows in 2022 thanks to large weightings to booming oil companies, saw outflows.

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