UK investors pulled £7.6bn from funds in mini-budget turmoil
UK investors yanked £7.6bn from funds in September as markets were rocked by the fallout of the government’s disastrous mini-budget, new data has revealed.
The scramble to pull cash from the market made September the second highest ever month for outflows from retail funds, according to new data from the Investment Association, behind just March 2020 when savers pulled £9.7bn to shield their cash from pandemic-fuelled volatility.
Investment association chief Chris Cummings said political and market uncertainty was brought to a head by Liz Truss’s mini-budget in late September.
“The resulting market turmoil contributed to investors pulling £7.6 billion from funds, the second highest monthly outflow on record,” he said.
“Outflows from equity funds have been increasing month on month, as economies globally continue to slow and central banks maintain their cycle of rate hikes.”
Equity funds bore the brunt of the outflows with £5bn yanked from the market – the highest amount on record. Global stock funds suffered the sharpest fall with £2bn pulled, while UK equity funds saw outflows of £1.3bn.