Nine-month high for European funds industry, says Lipper

The European funds industry has reported the highest rate of inflows in nine months, according to the latest sales trends from Lipper.

Investor demand also returned for global emerging market, equity and fixed income funds in January.

Sales of money market funds contributed to the nine-month high for the industry, in terms of sales, with €30.7 billion (£25.8 billion) in inflows recorded for the month.

“The varied nature of the revival of interest in mutual funds was reflected by the fact that money moving into corporate investment grade bonds also swelled, headed by euro-denominated products with €2.1 billion of net sales – a level not seen for nearly two years,” according to Lipper.

Overall sales for fixed income funds rose to €18 billion. A fifteen-month high was recorded for sales to UK investors alone, with €2.2 billion.

“The strongest support for mixed asset funds again came for those funds seeking absolute returns, with inflows of just over €1 billion,” it adds.

Net sales of high yield bond funds and global emerging market funds amounted to €6.3 billion each, while sales for equity funds totalled €4.2 billion.

The highest selling funds were Ashmore’s €970m Emerging Markets Liquid Investment Portfolio and Pimco’s €885m GIS Global Investment Grade Credit fund.