Investors have fled UK-focused funds in recent weeks, pulling more than £1bn from the market as the country plunges into a recession, according to a study.
Fears that the economic downturn will last longer in the UK than elsewhere have plagued the investor community, according to fund flows data provider Calastone yesterday.
Most European funds fell out of favour in November, according to the study. However, UK-focused funds were hit hardest of all – marking the second-worst outflow on record as investors shun ailing UK economy.
“Fears over the potential duration of the UK’s recession rather than hopes for inflation abating are dominating investor concerns for UK assets,” Edward Glyn, head of global markets, said.
“Despite low valuations, you can barely give them away at the moment.”