European equities sell-off intensifies

CalculatingEuropean equities saw the highest net outflows of all regions in July in Britain, according to the latest statistics published by the country’s Investment Management Association.

Net outflows amounted to £166 million (€208.8 million) in July, bringing the result for the past 12 months to outflows of £1.8 billion. This is the worst result for any region.

While the UK saw outflows of £672 million over the last 12 months, the second-worst result, more recent numbers show inflows of £55 million in July.

Global equities attracted the strongest inflows, totalling £294 million in July and £2.6 billion over the last 12 months.

Looking at sectors, £ corporate bond was the highest-selling sector, with net retail sales of £218 million in July, making fixed income sectors the best sellers for the eight consecutive month.

The Europe excluding UK sector suffered the worst outflows last month, at £175 million. July marked the fifteenth successive month of outflows. Richard Saunders, chief executive at the trade body, said these figures were “striking”, despite the macroeconomic news. “Our analysis of net retail sales over the last 12 months shows an interesting pattern of investor preferences shifting towards global funds at the expense of the UK, North America and, especially, Europe,” he said. Overall, the figures for July showed a similar picture to the previous months this year. Net retail sales were “around the £1billion mark”, the breakdown said, and there was a continued preference for bond and mixed funds. Institutional funds saw net sales of £130 million. ©2012 funds europe

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