Investors worried about the war with Iran pulled nearly £1.5billion out of equity funds last month in the biggest sell-off since the Budget in November.
A report by global funds network Calastone showed outflows surged to £1.44billion in March from £927million in February.
That marked the heaviest level of selling since November last year, when fears of a tax raid on pensions saw savers cash in their retirement pots ahead of Rachel Reeves’ Budget.
The outflows in March were the seventh worst on record and extended the run of withdrawals to an unprecedented ten consecutive months.
The sell-off was broad-based, with UK-focused funds seeing the biggest outflows of £592million, though this was up only slightly from £555million in February.
The FTSE 100 lost nearly 7 per cent of its value last month.
Sell-off: A report by global funds network Calastone showed outflows from equity funds surged to £1.44bn in March from £927m in February
The biggest deterioration in investor optimism was seen in European, Asia-Pacific, emerging markets and Japanese funds, according to Calastone.
The only sector to see inflows was North American equities, though these totalled just £99million – down from £371million in February.
DIY INVESTING PLATFORMS
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