Investors continue equity fund sell-off

Assets under management in investment funds globally grew by €0.97 trillion in July to €32.75 trillion – a month when investors continued to shift away from equity funds.Equity funds, as measured by Lipper, saw outflows of €17.1 billion, the most of any fund type.

Conversely, bond funds attracted the highest level of new money, with net inflows of €68.5 billion. Money market and commodity funds followed, with inflows of €42.1 billion and €2.9 billion, respectively.

However, there was little correlation between fund flows and performance, with equity funds emerging as the best performers and returning 4.6% on average.

“Other" funds and mixed-asset funds returned 4.3% and 2.5%, respectively, and commodity funds were the worst performers, losing an average 1.3%.

Year-to-date, bond funds have attracted the most new money, or €246.6 billion, and equity funds have suffered the biggest outflows.

In performance terms, the best performing funds since January have been commodity funds at 12.1%, followed by mixed-asset funds and bond funds, both posting average returns of 7.2%.

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