Funds enjoyed net inflows of £1.6bn in November 2024 from UK investors, following an uncertain September and October which caused over £9bn to be pulled out of the market, according to the Investment Association.
The cautious market surrounded the UK Budget at the end of October and US election at the beginning of November. However, as the future plans crystallised, investors regained some faith, with both equities and fixed income returning to positive flows.
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Fixed income managed sales of £524m in November after losing £742m in December. Equities began a slight comeback in the month by attracting £243m, but have a long climb ahead to bring back the £6.6bn lost in September and October.
UK equities, however, continued to experience outflows in November of £552m. While the sector’s sales remain in the red, it was the lowest level of outflows since August. North American equities saw the most faith from investors, with £428m in inflows.
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Miranda Seath, director of market insight and fund sectors at the Investment Association, said: “Investors will be watching closely to see what the year ahead holds. Trump’s pro-business agenda is likely to fuel US growth further, potentially leading to higher inflation.
“However, the prospect of uncertainty lingers, as potential tariffs could significantly impact global trade. In the UK, weaker economic data, combined with the introduction of national insurance contributions for businesses may also lead to price rises. In this climate, both the Bank of England and Federal Reserve are likely to be cautious about cutting rates.”