Macro comfort boosted fund sales

Equity and bond funds recently saw greater inflows partly due to expectations for looser monetary policy, Europe’s main industry trade association said.

Equity funds still saw net outflows in June – the month for which latest figures are available – but the €1 billion of net outflows were down from outflows of €22 billion in May.

Net inflows to bond funds, which were already positive at €23 billion in May, increased to €27 billion in June.

The European Fund and Asset Management Association (Efama), which collects the data, also showed that money market funds saw a dramatic reversal in flows, from net inflows of €3 billion in May, to outflows of €12 billion in June.

Overall net sales of Ucits and alternative investment funds totaled €23 billion in June, up from €12 billion in May. Ucits funds had net inflows of €7 billion, up from €1 billion in May, and alternative investment funds registered net inflows of €17 billion, up from €12 billion in May. 

Bernard Delbecque, senior director for economics and research at Efama, said: “Rising expectations of global monetary policy loosening and easing trade tensions led to a stronger demand for bond funds and a rebound in equity funds net sales in June”.

The US Federal Reserve recently cut interest rates for the first time since 2008.

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