According to data from the global funds network Calastone, November marked the second-worst month on record, with a net £3bn withdrawn from equity funds. This follows a record-breaking £3.6bn outflow in October.

UK-focused funds suffered the heaviest losses in November, haemorrhaging £847 million. Analysts attribute this largely to protracted uncertainty surrounding the recent Budget, City AM reports.

American funds followed closely, seeing £812m withdrawn as investors grew nervous regarding company valuations.

The data highlights a stark trend – UK-focused funds have experienced outflows in 54 of the past 55 months. The solitary month of inflows occurred immediately following Rachel Reeves’ 2024 Budget, as investors recycled cash after crystallising capital gains in anticipation of tax raids.

Edward Glyn, head of global markets at Calastone, noted that the “political narrative has played havoc” with savers. He argued that the selling frenzy was driven by fears regarding pension lump sums and capital gains tax hikes, stating that “savers benefit most from clarity and consistency”.

Looking ahead, Charles Hall, head of research at Peel Hunt, offered a sombre outlook, suggesting a recovery in December is unlikely as current trends persist.