UK investors buy record $14.5 billion of stocks this year, Calastone says By Reuters

LONDON (Reuters) – British investors added a record 11.4 billion pounds ($14.5 billion) into equity funds over the first six months of 2024, as the prospect of further central bank interest rate cuts fuelled demand for riskier assets, according to fund network Calastone.

The flows into stocks were the highest for a half-year period in Calastone’s 10-year records, the firm said, adding that in June UK investors added 1.7 billion pounds to equities, extending a strong run of inflows.

“Hopes for cheaper money after the painful rate squeeze of the last two-and-a-half years are the clear driver of record flows into equity funds so far this year,” said Edward Glyn, head of global markets at Calastone.

Global equity funds were June’s most popular category, netting 1.4 billion pounds, while European equities absorbed 714 million pounds, the data showed.

After a long period of strong growth, flows into North American equity funds dried up, with slim outflows of under 1 million pounds. Outflows continued from UK equity funds, but slowed to 522 million pounds – the smallest outflow this year.

Investors also cashed in from bond funds for the second straight month, pulling 471 million pounds, taking the two-month total to 1.1 billion pounds.

($1 = 0.7891 pounds)