European funds industry suffers €70bn outflow in June


The European funds industry experienced net outflows of €70.4bn (£60.6bn) in June, according to Lipper.

Of this figure, bonds saw net outflows €28bn, attributed to market uncertainty following Federal Reserve chairman Ben Bernanke’s suggestion of tapering quantitative easing. Equity funds posted net outflows of €10bn, although multi-asset attracted net inflows of €3.5bn.

June’s outflow brings year-to-date net inflows for the industry down to €109.6bn.

Bond funds remain the best selling asset class in Europe this year – with “estimated” net inflows of €81bn year to date.

Recent figures from the Investment Management Association showed UK investors pulled a record £624m from bond funds in June, with £ Corporate Bond, Global Bonds and £ Strategic Bond being the three worst-selling sectors of the month.

Lipper head of EMEA research Detlef Glow says: ”As in May, asset allocation funds were by far the most popular for June.

”Often funds in this sector have an absolute-return objective, and it is interesting to look at the wider absolute return universe, where we see these funds attracted net inflows of €4.4bn for June.

“At the other end of the spectrum UK equities continued to suffer; withdrawals this year now total €7bn net – the worst of any sector (excluding money market funds).”

BlackRock was the best selling group for long-term funds for June with net sales of €1.7bn, followed by Banco Popolare Società Cooperativa and Standard Life.