UK-based investors pulled a record 2.4 billion pounds ($2.74 billion) from equity funds in September, fund network Calastone said on Wednesday.
The net outflows make September the worst month in what is already the worst year in equity fund history, Calastone said.
UK equity funds were the most brutal hit, Calastone added, with a turnover of £694m for the 16th consecutive month of outflows. American stock funds also recorded the largest outflow of capital.
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The outflows underscore a lack of investor confidence in Britain this year, a trend exacerbated in recent weeks by the UK's Sept. 23 "mini-budget," which included enormous unfunded fiscal spending that sent bond yields soaring. government and the pound fell sharply.
"The near-permanent icy stance on UK assets shows no sign of thawing," said Edward Glyn, head of global markets at Clapton.
Equity fund outflows totaled £4.7 billion in the third quarter, more than the amount withdrawn in 2016.
Global markets have taken a beating in recent months as major central banks have raised interest rates to combat high inflation even as economic growth slows.
"The rise in global bond yields is leading to a dramatic revision in asset prices of all kinds," Glyn said.
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Glyn attributed the record outflows from the US to the sensitivity of growth stocks to interest rates and said emerging markets were hit by the prospect of a recession and a stronger dollar while citing a loss of momentum in China to explain the departures in the Asia-Pacific region. region.
Apart from stocks, inflows into bond funds turned "very negative" in the last week of September as markets reacted to the UK government's fiscal plans, Calastone said.
Funds with a focus on the environment, social affairs, and governance (ESG) also posted losses, with their first total outflow in more than three years, Calastone said.
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Property funds also saw much higher outflows in September, with a net flow of £89m driven by a collapse in buying interest, Calastone said. Glyn told it was "not a property-specific problem."
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