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Rachel Reeves’s budget ‘havoc’ triggered £3bn funds sell-off
Investor fears over pension and tax changes led to six months of equity fund withdrawals totaling £10.4 billion, with November outflows reaching £3.02 billion, Calastone reported.
- Calastone reported last month that UK equity fund outflows reached 6 consecutive months totaling 10.39 billion, with November's withdrawals at 3.02 billion, according to Edward Glyn.
- Amid growing political uncertainty, the political narrative unsettled UK savers in recent months, with fears that the chancellor would need to find 50 billion, impacting investor confidence.
- Sector flows reveal funds moved into safe-haven vehicles, with money-market funds taking 1.25 billion and fixed-income funds receiving 643 million, while UK-focused funds withdrew a net 847 million.
- Inflows resumed on the final three days of November despite a two-percentage-point rise in the tax rate to 10.75 per cent, aimed at raising £27.2 billion.
- In recent months, UK stock funds underperformed last year, with investors pulling a net 9.6 billion despite Wall Street's seven straight months of gains, Calastone said.
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Rachel Reeves's Budget sparks stock market 'havoc' as investors sell off record £10.4billion
Rachel Reeves's prolonged Budget run-up has sparked a record rush out of the markets, with British investors pulling more than £10billion from global stocks in just six months
·London, United Kingdom
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UK investors' stock selling spree extends to nearly $14 billion, data shows
British investors were net sellers of stocks for a record-extending sixth consecutive month in November, data from funds network Calastone showed on Thursday, as fears the government would cut tax advantages for investments in its closely-watched budget contributed to the cash-out.
·United Kingdom
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Coverage Details
Total News Sources14
Leaning Left3Leaning Right3Center3Last UpdatedBias Distribution34% Left, 33% Center, 33% Right
Bias Distribution
- 34% of the sources lean Left, 33% of the sources are Center, 33% of the sources lean Right
34% Left
L 34%
C 33%
R 33%
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