Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

UK investors’ stocks sell-off accelerates, ESG ‘boom ends’ – Calastone

by Uma
0 comment

UK investors’ stocks sell-off accelerates, ESG ‘boom ends’ – Calastone

LONDON (Reuters) – Investors in Britain dumped both stocks and bonds in August as they continued to opt for the safety of cash and money-market funds, according to data from fund network Calastone published on Tuesday.

Funds focused on environmental, social and governance issues (ESG) also saw a fourth consecutive month of net selling, down 953 million pounds – taking the total pulled from such funds to nearly 2 billion pounds since May.

Overall, equity funds shed 1.19 billion pounds ($1.50 billion) during the month – the worst since September 2022 – with UK-focused funds hit hardest, with redemptions of 811 million pounds, according to the data.

Fixed income funds also saw net selling of 330 million pounds in August, marking a reversal of fortunes after adding 4.8 billion pounds over the first seven months of the year against a backdrop of rising interest rates.

“Fear was a big motivator in August,” said Edward Glyn, head of global markets at Calastone. “With savings interest rates and yields on safe-haven money market funds at their highest level since 2007, it doesn’t take much to cause a rout.”

Money market funds once again outperformed, adding 673 million pounds – the second highest monthly inflows on record.

Asset managers, which had previously cashed in on a surge in demand for ESG funds, should take note of the developing sell-off, said Calastone’s Glyn.

“The move out of ESG funds has gathered pace in a remarkable reversal after the boom in recent years. Four months of outflows signals a new trend emerging that fund houses will have to work hard to counteract.”

($1 = 0.7916 pounds)


(Reporting by Iain Withers, Editing by Tomasz Janowski)