European investors flee equity funds and move to bonds

European fund flows were a positive €22 billion for July, a month which saw investors continue to move away from equity funds. Equity funds, measured by Lipper, saw €7.7 billion of outflows, the most of any asset class.

The beneficiary of the changing shape of fund flows were bond funds, which enjoyed €25.4 billion in inflows. Alternative Ucits funds and mixed asset funds followed, with €4 billion and €1.6 billion, respectively.

Also aiding to keep fund flows positive were commodity products and real estate funds which saw inflows of €1 billion and €100 million respectively.

Within the broad universe of bond funds, it was emerging market debt funds in hard currencies which was the best selling sector among long term funds, with €5.4 billion of inflows.

In terms of jurisdictions, Ireland and France enjoyed the most inflows with €18 billion each, followed by Germany at €3.2 billion. Conversely, Luxembourg was the single market with the highest net outflows at €5.5 billion, followed by the UK at €2.3 billion and Belgium at €1.6 billion.

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