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November saw exits from the equity market ‘continue unabated’, analysis from trading services firm Calastone showed Thursday, though outflows were reduced slightly from the month prior. Investor withdrawals from equity funds netted £3.02 billion in November, according to Calastone’s fund flow index, representing the six consecutive month of exits. Net outflows reduced on a monthly basis from £3.63 billion in October, which Calastone had dubbed ‘worst ever month for equity funds’. North American and UK funds were November’s biggest losers, with outflows of £812 million and £847 million respectively. Global funds with significant US exposure lost £747 million, while European funds were the only vehicles to record an inflow, which amounted to £78 million in November. There was movement towards ‘safe-haven’ money market funds, which booked inflows of £1.25 billion during the month, beating October’s ‘record’ £955 million and suggesting hardened risk-averse sentiment, Calastone noted. Every day bar one in the lead-up to the UK budget announcement saw fund exits. The announcement itself brought trading to a halt, with outflows pausing on November 26, before inflows resumed the same day and continued to November 28. Edward Glyn, Calastone’s head of global markets, cited this as ‘clear evidence that many investors were selling their holdings as concerns rose at the possible curtailment of pension lump sum withdrawals, or of further capital gains tax hikes.’ ‘The political narrative has played havoc with UK savers in recent months. Never have we seen such consistent or large-scale selling before,’ Glyn noted. ‘The recent period of policy uncertainty has clearly unsettled investors and, in some cases, prompted reactive decisions they may later regret. Savers benefit most from clarity and consistency, so they can plan properly for long-term goals.’ Calastone’s fund flow index is based on buy and sell orders from UK-based investors into UK-domiciled funds. Calastone estimated that around 85% of these orders flow through its network. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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