Lipper European Fund Flow Trends June 2014

Lipper European Fund Flow Trends June 2014

Lipper European Fund Flow Trends June 2014

The European mutual funds industry enjoyed overall net inflows of €38.1bn into long-term mutual funds for June 2014, which drove up the net inflows for the first half of 2014 to €244.1bn. The net inflows for June were driven mainly by flows into bond funds (+€19.2bn), followed by
mixed-asset funds (+€12.1bn) and equity products (+ €6.0bn). Also, property products (+€0.8bn) as well as alternative/hedge funds (+€0.5bn) saw net inflows, while commodity funds (-€0.001bn) and funds from the “other” peer group (-€0.5bn) faced outflows.
In addition to the long-term mutual funds, enhanced money market products enjoyed net inflows of €0.3bn, while money market funds themselves faced net outflows of €10.9bn for June. Despite these outflows, money market funds still posted net inflows of €6.0bn for the first half of 2014.
With regard to long-term funds, asset allocation products (+ €6.6bn) were the best selling asset class, followed by bonds flexible (+€3.1bn) and bonds global currencies (+€2.9bn) as well as equities Europe (+€2.9bn) and mixed-asset balanced (+€2.7bn). At the other end of the spectrum equities global (-€3.4bn) suffered net outflows, bettered by bonds GBP corporate investment-grade (-€2.6bn) as well as bonds USD corporate high yield (-€1.8bn), guaranteed funds (-€1bn), and equities Germany (-€0.8bn).
JUNE IN BRIEF:
The European funds industry enjoyed net inflows to long-term mutual funds of €38.1bn for June 2014.
Single fund market flows for long-term funds showed a mixed picture for June, with Italy (€4.3bn), the United Kingdom (+€3bn), and Spain (+€3bn) leading the table. Meanwhile, Norway (-€1.2bn), Belgium (-€0.7bn), and The Netherlands (-€0.6bn) stood on the other side.
Bond funds—with estimated net inflows of €19.2bn—were the best selling asset class overall for June 2014.
BlackRock, with net sales of €2.7bn, was the best selling group of long-term funds for June, ahead of UBS (+€2.1bn) and Woodford Investment (+€2.1bn). Provisional figures for Luxembourg- and Ireland-domiciled funds suggest that mixed- asset funds, with estimated net inflows of around €9.3bn, will be the best selling products for July 2014.
Read commentary from Lipper’s Research team globally at: lipperinsight.thomsonreuters.com
Early indicators for July activity:
While the focus of this report is to summarise comprehensive data on mutual fund flows across Europe for June (see above and over), there is also an opportunity to provide some early indicators of provisional flows data for July. Looking at Luxembourg- and Ireland-domiciled funds, mixed-asset funds—with projected net inflows of around €9.3 bn—should be the best selling asset class for July, followed by equity funds (+€7.2 bn). Even though these numbers are estimates, it seems that mixed-asset products are becoming European investors’ favorite for 2014.
Detlef Glow, Head of EMEA research at Lipper.