Calastone launches UK investor sentiment index

Monthly funds flow index provides snapshot of UK market.

By Global Custodian staff

Global funds transaction network, Calastone has launched a Fund Flow Index (FFI), drawing on the fund flow data going through its transaction network. The first of what will be a monthly series, free to subscribe to, offers fund managers a real-time, live snapshot of the UK market and can be analysed against any particular global geo-political or macroeconomic event.

The Calastone FFI shows the net inflow and outflow of capital to and from open-ended investment funds relative to the total value of units bought and sold in those funds. A reading of 50 indicates that new money investors put into funds equals the value of redemptions (or sales) from funds. A reading of 100 would mean all activity was buying; a reading of 0 would mean all activity was selling.

The first FFI indicates that inflows into UK-domiciled funds are decreasing, while more flow is going to offshore-managed funds. This is seen as a reaction to the UK’s Brexit vote, and the likely loss of passporting for financial services. Fund flow remains structurally positive as investors build their savings over the long term to meet their future needs.