Equity fund outflows climb to highest levels since Brexit vote

Global_chartsInvestors withdrew £1.53 billion from equity funds in March, the largest outflow since July 2016 at the time of the Brexit referendum, according to Calastone’s latest fund flows report, as Russia’s invasion of Ukraine continued to rock markets.

Investors actively sold out of funds, Calastone said, as opposed to going on a buy strike, and outflows increased week-on-week over the month before tailing off at the end of March.

Global equities suffered the greatest impact, as investors sold down a net £992 million of their holdings in this category, while UK funds overweight commodity stocks benefitted from some protection.

Fixed income funds also suffered outflows, totalling £274 million, making it the worst month for the asset class since the start of pandemic, though outflows were higher in February.

“The world’s major stock markets were very volatile in March, but they have mostly regained the losses they sustained when Russia attacked Ukraine on 24 February,” said head of global markets at Calastone, Edward Glyn.

“This has not been enough to reassure UK fund investors. Global risks are rising – growth prospects have deteriorated, and a recession is now a possibility in many developed countries. Inflation is taking hold, living standards are being squeezed and government budgets are also under pressure.”

“Against this backdrop, it’s easy to see why March saw the largest net outflows from equity funds in almost six years and why bond funds are out of favour too,” he added.

Environmental, social and governance (ESG) funds remained in favour among investors, as inflows climbed to £136 million, though this was the lowest inflow figure in two years.

ESG funds averaged monthly inflows of £798 million over the past 12 months, according to Calastone.

Funds also flowed out of real estate vehicles in March, though in the mixed asset space inflows were in line with average figures.

© 2022 funds europe

Thought leadership


What should investors expect in 2024?

For the year ahead we expect lower growth, lower inflation and limited interest rate easing. Find out more in AXA IM’s Outlook 2024.

Ocorian switching admins native

Why are managers switching fund administrator?

13% of alternative fund managers are looking to switch their fund administrator over the next 18 months. Find out why.



This whitepaper outlines key challenges impeding the growth of private markets and explores how technological innovation, when bolstered by the operational experience and global reach of FMIs, can provide solutions to unlock access to private market funds for a growing investor base.


Transporting goods by sea is the lowest carbon way of transporting goods. That said, the shipping sector contribute 3% of global carbon emissions, so we need it to get to net zero. Breakthrough technologies have the power to reshape the industry and drastically reduce its environmental footprint.


Executive Video Interviews

Why fund admin tech is a key competitive advantage

Cian Hyland, Strategic Client Relationship Director at Deep Pool Financial Solutions spoke to us about how technology enables efficient data management, reporting automation and secure data access.

Insights from State Street

Cuan Coulter, Global Head of Asset Managers and Head of UK and Ireland at State Street, discusses how fund managers decide between the two cross-border fund domiciles, namely Ireland and Luxembourg, and why asset managers find managing data so difficult.

Unlocking access to private markets

Vincent Clause, who heads the global funds strategy at Euroclear and David Genn, CEO of Goji, sit down with Funds Europe to explain how technological innovation, bolstered by operational experience and global reach, can provide solutions that unlock access to private markets.

Sustainable investing in the DC world

Claire Felgate, a specialist in UK defined contribution pension schemes at asset manager BlackRock, talks with Funds Europe editor Nick Fitzpatrick about how - and the pace at which - DC pension schemes are adapting to the requirements of sustainable investment.



Watch our webinar for a deep dive into the findings of the fresh-off-the-press EU Taxonomy 2023 Insights Report, based on Clarity AI's best-in-class coverage of EU Taxonomy reported data and CDP industry-leading environmental datasets. 

In this webinar, we discuss tools for optimising fund data management and distribution, the role of global fund classifications and ratings, and how technology and automation enhance data integrity and insights.