European equity funds suffer £6.7bn Q2 outflows

Martin Reeves 700

European equity funds saw €7.8bn (£6.7bn) in outflows during the second quarter of 2013.

According to the Lipper European Fund Market Mid-Year Review 2013, this is a sharp decline from Q1 when equities saw average monthly inflows of €12.3bn.

Flows for European mutual funds slowed to €300m for Q2, again in contrast to Q1 when the sector attracted €109.6bn in inflows.

Ian Winship BlackRock

The report attributes the fall in inflows to a total of €28bn of redemptions from fixed income funds, as a result of Federal Reserve Chairman Ben Bernanke’s talk of tapering quantitative easing.

According to Lipper: “Q1’s boost in activity was no doubt reflected in the 158 new equity fund launches over the course of the second quarter. Nevertheless, during the first half of 2013, new launch activity was dominated by bond funds, reflecting the demand of investors for new products within this sector, mainly driven by the chase for yield.”