Bond funds attracted £1.06bn of net inflows in June, marking their third-strongest month on record, as investors continued shifting towards income-generating and diversified strategies, according to the latest Fund Flow Index from Calastone.
Equity funds recorded net outflows of £437m during the month despite broadly stable markets, while multi-asset funds extended their strong run with £1.97bn of inflows. Money market funds also returned to positive territory, attracting £215m.
Within equities, global and North American funds were the only sectors to post inflows. Asia-Pacific equity funds suffered £312m of outflows, marking a record 38th consecutive month of redemptions, while UK-focused equity funds lost £260m.
The first half of 2026 reflected the same trend. Bond funds attracted £2.29bn of net inflows, equity funds saw £2.67bn of outflows, and multi-asset funds recorded a record £11.9bn of inflows.
Edward Glyn, head of global markets at Calastone, said investors are becoming more selective in their risk-taking, favouring balanced portfolios that combine growth potential with greater resilience. He added that attractive bond yields, the prospect of lower interest rates and ongoing geopolitical and economic uncertainty are driving demand for fixed income and diversified investment strategies.
