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European funds attract inflows despite Covid uncertainty

fund_flowsEuropean investors bought further into mutual funds and ETFs in September, despite Covid-related uncertainty. 

Net inflows reached €38 billion by the end of the month, with only commodities and alternative Ucits funds failing to attract positive flows.

Equity funds led the way, drawing in €26.4 billion, while bond funds saw €6.7 billion of inflows, according to the latest fund flow data from Refinitiv. 

ETFs overall took in €6 billion of new investor cash. 

Detlef Glow, Lipper head of regional research at Refinitiv, said: “Even as the global equity markets recovered further in a volatile environment, investors returned to long-term mutual funds.”

According to Glow, this is because they expected stimulus packages from central banks and governments globally to keep interest rates low and “foster global economic growth despite upcoming uncertainties from a possible second wave of Covid-19 lockdowns in Europe.”

With €12.6 billion, the UK was the fund domicile with the highest inflows, followed by Ireland (€10.3 billion) and Luxembourg (€8 billion). 

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