Brits’ Shift Toward Foreign Funds Hampers Market: ECM Watch

The UK’s retail investors have sold more than £50 billion ($66.46 billion) worth of domestic equity funds since 2020, according to Panmure Liberum analysts, as London’s capital markets face international competition.

Mom-and-pop investors have been ditching UK equity funds for international exposure in recent years, according to a report on Tuesday from analysts Joachim Klement and Susana Cruz. Alongside the outflows from local funds, they piled more than £25 billion into foreign equity baskets, said the note, citing data from The Investment Association through May.

“Retail investors effectively have done the same as institutions and reduced their UK holdings ...