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. ©2016 funds europe

Sponsored Profiles

SPONSORED FEATURE: Alternative thinking

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

SPONSORED FEATURE: Interest rate risk hedging: Swapping to other options

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

SPONSORED FEATURE: Why blockchain could be the fund industry’s next Ford Model T

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

SPONSORED FEATURE: Open architecture: In need of protection

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

CEO INTERVIEW: Munro gains three-year track record

Mar 16, 2017

Aviva Investors’ annual results this month were the third set since Euan Munro took over as CEO. Nick Fitzpatrick speaks to him about the ‘Aims’ fund at the heart of the firm’s outcome strategy.

DISTRIBUTION INTERVIEW: Tales of the unexpected

Mar 16, 2017

Laurence Terryn, a fund selector at Candriam, tells David Stevenson how the twists and turns of the past year’s macro environment flavoured her approach to fund selection.

Roundtables

ASSET SERVICING ROUNDTABLE: Under pressure

Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.