European investors seek out safer assets in August

European flagsThe European fund industry saw net flows of €18.5 billion during August – a slower rate than in July and with most money seeking bonds. Lipper data for August shows bond funds and mixed asset products topping the list for mutual funds during the month, with inflows of €11.5 billion and €7.5 billion respectively. The third best asset type in terms of net flows was property funds, with a significantly lower €0.7 billion. In contrast, alternative/hedge funds saw net outflows of €0.5 billion. For long-term funds, asset allocation products were the best sellers with €3.8 billion of inflows, followed by flexible bonds at €2.7 billion and global currency bonds at €2.6 billion. In contrast, US dollar corporation high yield bonds suffered the worst net outflows, at €2.8 billion. BlackRock topped the master groups by sales and asset growth for the month with €2 billion in net sales, beating DeAWM at €1.5 billion and Vanguard at €1.4 billion. The HSBC FTSE All-World Index was the top selling fund, with estimated net sales of €1.1 million, followed by the Vanguard S&P 500 Ucits ETF and the iShares Core DAX Ucits ETF. For the single markets, Italy repeated its July performance by maintaining the highest net flows at €4.1 billion in August. Germany and Spain followed with €1.3 billion and €1.1 billion. The UK, Austria and Turkey all saw outflows during the month. Bond funds, with projected net inflows of €3.6 billion, are expected to be the best-selling asset class again in September, when looking at Luxembourg- and Ireland-domiciled long-term mutual funds. ©2014 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

10 Jun 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

13 May 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

13 Oct 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

07 Sep 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.