LONDON, Sept 5 Reuters Investors in Britain dumped both stocks and bonds in August as they continued to opt for the safety of cash and moneymarket funds, according to data from fund network Calastone published on Tuesday.

Funds focused on environmental, social and governance issues ESG also saw a fourth consecutive month of net selling, down 953 million pounds taking the total pulled from such funds to nearly 2 billion pounds since May.

Overall, equity funds shed 1.19 billion pounds 1.50 billion during the month the worst since September 2022 with UKfocused funds hit hardest, with redemptions of 811 million pounds, according to the data.

Fixed income funds also saw net selling of 330 million pounds in August, marking a reversal of fortunes after adding 4.8 billion pounds over the first seven months of the year against a backdrop of rising interest rates.

Fear was a big motivator in August, said Edward Glyn, head of global markets at Calastone. With savings interest rates and yields on safehaven money market funds at their highest level since 2007, it doesn39;t take much to cause a rout.

Money market funds once again outperformed, adding 673 million pounds the second highest monthly inflows on record.

Asset managers, which had previously cashed in on a surge in demand for ESG funds, should take note of the developing selloff, said Calastone39;s Glyn.

The move out of ESG funds has gathered pace in a remarkable reversal after the boom in recent years. Four…