UK investors pumped a net 1.4 billion pounds ($1.76 billion) into equity funds in April, ramping up their exposure to stocks at the fastest pace seen since May 2021, funds network Calastone said on Thursday.

Global markets have suffered a nervous first four months of the year, as investors weigh the continued turmoil in the U.S. banking system, and the state-engineered takeover of Credit Suisse by domestic rival UBS in March.

"Capital markets largely traded sideways in April after a strong March – yet fund flows show risk appetite is on the rise," Edward Glyn, head of global markets at Calastone, said.

UK-focused funds, however, continued to bleed cash over the month, shedding 782 million pounds in the 23rd consecutive month of net outflows, the research showed, taking the total divestment from UK equity funds to 13.86 billion pounds since June 2021.

The exodus from UK funds is virtually matched by inflows into globally-focused products, which have attracted 13.93 billion over the same period.

"The horizon is not unclouded however. Company profits are under pressure and there remains a lot of uncertainty over the likelihood and severity of any potential economic downturn. The resurgent optimism is therefore rather fragile," Glyn added.

Property funds saw net withdrawals for the ninth month running, with 24 million pounds pulled by investors in April, even as risk appetite across other asset classes rallied.

Stubbornly high inflation rates in Britain, the highest in Western Europe and so far untamed by hikes in interest rates, are fuelling fears for a prolonged economic slowdown that would likely see property values plunge. ($1 = 0.7947 pounds) (Reporting By Sinead Cruise, editing by Iain Withers)