Strong inflows signal better times ahead for European funds – Lipper

Added 24th October 2016

Thomson Reuters Lipper's September snapshot of the European fund industry looked rosier than it has done in recent months with inflows across all European asset classes, save for equities.

Strong inflows signal better times ahead for European funds – Lipper

European funds drew €15bn in net inflows over the period, according to Reuters' findings.

In a reversal of fortunes for the European fund industry, only equity vehicles suffered €1bn in net outflows in the long-term fund segments during the month; and the losses were comparatively smaller to those seen in prior months.

The Reuters’ data indicated European bond funds were responsible for bringing in €8.9bn in net inflows. Mixed-asset funds, the next bestselling vehicle, took in just under half that amount (€4.2bn) in September.

“Even though these flow numbers may indicate that European investors continued to stay cautious in September,” said Reuters, “the sector flows showed they further tended to chase yield.”    

With yield high on investors’ agenda, emerging markets focused equity and debt funds continued to be the primary drivers of inflows into the category. The equity emerging markets global sector was the top seller once again, generating €4.1bn during the month, followed by bond emerging markets in hard currencies (€2.5bn). EM debt funds in local currencies also proved popular, receiving €2.2bn in inflows. 

Investors continued to pull out of US equities, on the other hand, resulting in €2.5bn in redemptions.

Money products also faced a challenging month, losing €8.3bn.

In terms of sales by fund domiciles, Luxembourg saw €11.4bn in inflows, followed by Ireland (€4bn) and the United Kingdom (€3.4bn). France was the worst regional performer, haemorrhaging €13.2bn in September.

The report also named BlackRock as the greatest promoter of September, with net sales of €4.9bn, and the Templeton Global Bond Plus SIF fund as the bestselling long-term fund. 

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Kristen McGachey

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Kristen joined Last Word Media and the world of financial journalism in April 2016, leaving behind a career in a legal publishing firm as a senior researcher turned assistant editor.

This native Angelino initially moved to the UK in 2008 to complete her undergraduate studies at the University of Nottingham. She subsequently obtained a Masters degree in Philosophy with Literature from the University of Warwick.

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