€7.5bn pulled out of equity funds across Europe in June, says Morningstar

European fund investors redeemed €7.5bn from equity funds last month, as the effects of the eurozone crisis continued to cut into investor confidence.

Instead, investors continued to put their money into bond funds, with inflows hitting €9bn over the month of June, and taking total second quarter inflows to €21bn for the asset class.

Passive funds also had a good month, with €859m going into the Vanguard FTSE UK All Share fund alone. Morningstar said that the trend was visible in more markets than just the UK, however, with UBS’ passive funds seeing healthy inflows and the KLP AksjeGlobal Indeks having its strongest month on record.

Further evidence of investors’ desire to avoid risk came in the money market funds sector. Despite total quarterly inflows of €10bn, investors ran for the exit in June, withdrawing €19bn, the worst month since June 2011. The recent ECB rates cut may encourage this trend, as many money market funds have since announced that they will have difficulty maintaining returns.

Across all fund types, investors withdrew €1.2bn in June, taking total second quarter redemptions to €4.2bn.


Estimated Net Flows €Mil June 2012 Q2 YTD 2011 Net Assets €bn
Allocation 395 2,456 9,421 5,379 507
Alternative -1,111 -3,289 -913 -2,154 267
Commodities -208 -598 -299 -452 22
Convertibles -307 -1,325 -320 -4,953 38
Equity -7,518 -21,106 -17,565 -69,816 1,554
Fixed Income 8,796 21,139 60,254 -43,742 1,341
Property -1,260 -1,517 -652 -2,841 105
All Long Term -1,213 -4,240 49,928 -118,580 3,834
Money Market -19,250 10,153 18,303 -5,708 941


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