Equity fund inflows on the up
Statistics1 show that, during the first half of 2024, net inflows to equity funds were over £11.3bn, the best six-month recording for equity funds according to global fund network Calastone’s ten-year record. Of the most positive inflows, North America and global funds recorded £7.8bn and £7.2bn respectively, with emerging market and European funds also recording inflows, offset by outflows for income funds and UK-focused funds. Head of Global Markets at Calastone, Edward Glyn, commented, “Hopes for cheaper money after the painful rate squeeze of the last two-and-a-half years are the clear driver of record flows into equity funds so far this year.”
Dividends – most sectors deliver growth
During Q2, UK dividends reached new highs, primarily supported by one-off special dividends and banking sector payouts2. Totalling £36.7bn in the quarter, dividends increased by 11.2% on a headline basis. With 16 out of 21 sectors experiencing higher payouts, growth was ‘broad based,’ and the median dividend increase was 5.4% year-on-year.
Numbers paying Dividend Tax doubles
The number of people paying Dividend Tax is expected to double from 1.8 million in 2021/22 to nearly 3.6 million in the current 2024/25 tax year, boosting Treasury coffers by an estimated £18bn3. The data indicates one fifth of all higher rate taxpayers will pay the tax, the average bill being £5,379, increasing to £32,578 for additional rate taxpayers.
1Calastone, 2024
2Computershare Dividend Monitor, 2024
3FOI AJ Bell, 2024
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
