Persistent outflows mask positive UK fund performance in 2024

It’s no secret that UK equities have been experiencing persistent outflows for the past 2-3 years. At h2Radnor, we track monthly fund flows for actively managed funds focused on UK equities and the story has remained bleak, with only very minor inflows in some investment themes in 2024.

Hoping to counter the news flows with some positivity, we took an alternative perspective and asked, “Had investors not pulled money from UK funds in 2024 – would they be better off?”. In other words, has the actual fund performance been better than the underlying fund flows into these funds?