European funds inflows accelerate in July

Inflows into mutual funds accelerated in Europe throughout July marking a continuation of the trend seen at the end of the first half this year.

July was the fifth consecutive month of net positive flows for long-term mutual funds which saw a total of €81.5 billion of new investor money, according to the latest figures from Refinitiv.

Overall outflows from long-term investment funds totalled €43.2 billion.

Despite current negative interest rates in Europe, the best-selling asset type in the long-term mutual funds segment were bond funds with inflows of nearly €40 billion.

Equity funds followed with positive flows of €9.4 billion. Commodity funds received nearly €1 billion of inflows, while all other asset types faced outflows.

Investors reacting to the current market environment saw sentiment favouring money market funds, Refinitiv said.

The overall best-selling asset type were money market funds with inflows of €38.3 billion. ETFs investing in money market instruments contributed to outflows of nearly €0.7 billion to the total in contrast with actively managed funds.

In terms of domiciles, Ireland saw the highest net inflows in Europe (€43.3 billion), followed by France (€19.2 billion) driven by flows into money market products.

Luxembourg came next with €13.3 billion of inflows, then Switzerland with €3.1 billion, and the UK which saw €1.1 billion of new investor cash.

The European fund industry saw a return to positive flows throughout the first half of this year against a backdrop of a volatile but positive market environment, another recent Refinitiv report found.

Following a first quarter of outflows, the industry saw mutual fund inflows of €41.3 billion amidst US/China trade war talks, discussions of a possible return of the euro crisis, and a general economic slowdown with decreasing earnings at company level.

©2019 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST