UK's Chancellor Reeves' Tax Plan Boosts Exits from Funds Holding British Companies

Forex - The UK Chancellor of the Exchequer, Rachel Reeves, has sparked an increase in investors looking to sell funds that own shares in publicly listed companies in the UK due to concerns over inheritance tax. According to Morningstar Direct, investors withdrew approximately £300 million from funds specializing in small UK companies last month. This represents nearly a fourfold increase compared to the £80 million withdrawn in August. Medium-sized UK stocks also suffered from the budget uncertainty, with funds reporting outflows for the first time since March. Investors pulled a net £30 million from medium-sized funds, reversing five consecutive months of inflows into medium-sized UK stocks.