UK Investors Pour Record £11.4 Billion into Equity Funds in First Half of 2024

British investors injected a record £11.4 billion into equity funds during the first six months of 2024, driven by the expectation of further central bank interest rate cuts, according to Calastone.

This marked the highest inflow for a half-year period in Calastone’s decade-long records.

In June alone, UK investors added £1.7 billion to equities, continuing a trend of strong inflows.

Edward Glyn, head of global markets at Calastone, attributed the record flows into equity funds to hopes for cheaper money following the recent period of high-interest rates.

Global equity funds were particularly popular in June, attracting £1.4 billion, while European equities saw inflows of £714 million.

In contrast, North American equity funds experienced minor outflows, and outflows from UK equity funds slowed to £522 million, the smallest this year.

Additionally, investors withdrew £471 million from bond funds for the second consecutive month, bringing the total bond fund outflows over two months to £1.1 billion.