(Bloomberg) -- Investors moved money out of UK-focused equity funds for a ninth straight year as they continue to bail on an underperforming market and find better returns in US tech stocks.
Net outflows reached £9.6 billion ($12 billion) last year, compared with inflows of £19.5 billion for global-focused funds, according to data from Calastone, a provider of fund management services.
It’s a statistic that highlights the dire situation for UK equities. The London market is shrinking as some companies leave the London Stock Exchange for the deeper cash pools in New York, while others have been bought out due to their cheap valuations. The country also lacks the technology companies that have propelled markets elsewhere to new heights.
Since 2016, a total of £45 billion has been withdrawn from UK equity funds.
Read: UK Retail Investors’ Equity Aversion Hampers Market, Abrdn Says
Earlier this month, Abrdn Plc said British savers are the most averse to investing in stocks among G7 economies. UK adults allocate just 8% of their wealth to shares and mutual funds, with much of their savings held in property, pensions and cash, the asset manager said in a report. That compares with a 33% allocation in the United States.
North American equity funds attracted £11.9 billion in 2024, according to Calastone.
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