Investors pull £300m a week from UK equities

Peter Elston, chief investment officer at Seneca, a multi-asset fund management firm, said: "Equity and bond markets are adjusting to expectations of lower interest rates, rather than reflecting a recession, there is always a lag between the recession happening.

"Then it happens that the market realises the interest rate changes don't avert a recession, and when they do, equity markets will fall further."

Meanwhile the data showed passive investment products now account for 17 per cent of the total market, while ethical, sustainable and governance funds account for 1.6 per cent of the total funds under management.