Macro comfort boosted fund sales

GraphUp3>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.

©2019 funds europe

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