UK-based equity funds see record $4.1 billion inflows in March, says Calastone

LONDON (Reuters) - British-based equity funds saw a record three billion pounds ($4.13 billion) in inflows in March as investors bet on an economic rebound, data from fund network Calastone showed on Thursday.

Globally-focused equity funds attracted the most investment as vaccine roll-outs around the world boosted optimism.

"New capital has flooded in from investors keen to capitalise on the post-COVID economic recovery," said Edward Glyn, head of global markets at Calastone.

The inflows beat a previous record set in April 2020, following government and central bank stimulus in response to COVID-19.

Environmental, social and governance (ESG)-focused funds were also in demand. ESG equity funds saw a record 1.6 billion pounds in inflows in March, while ESG fixed income flows hit a record 192 million pounds.

However property funds, hobbled by a round of UK fund suspensions last year, saw record outflows of 589 million pounds, the 30th straight month of outflows.

More than two-thirds of UK-based fund flows by value pass across the Calastone network each month.

($1 = 0.7258 pounds)

(Reporting by Carolyn Cohn; editing by Barbara Lewis)