European fund flows top €200bn mark for year, Lipper data shows

Latest European fund flow data from Lipper show investment funds, excluding money market funds, saw inflows of €33bn in May across the region, taking the total so far in 2013 to more than €200bn.

The monthly total for the entire industry was about half that seen in the previous month, April, as investors withdraw some €6bn from money market funds.

Bond fund sales in May hit €19.7bn, or about half the €35.7bn seen in April. Still, the total for 2013 so far reported by Lipper is close to €110bn for the sector, which is about half as much again more than for the same period in 2012.

The most popular sector was asset allocation funds, which saw sales of €7.3bn. These funds often have an absolute return objective, according to the Lipper report on the figures, which was compiled by Ed Moisson (pictured), head of UK and Cross-Border research. That stands in contrast to figures for UK equity funds, which have seen withdrawals total €7bn so far this year – the worst for any sector excluding money market funds.

According to Lipper’s data, the best selling group in May was JP Morgan, with net sales of €3.4bn, ahead of Franklin Templeton, €3.2bn, and BlackRock, €2.7bn.

Looking ahead, the provisional figures for June suggest Luxembourg and Ireland domiciled funds have suffered redemptions, for both bond and equity funds – in the reginon of €23bn and €7bn respectively.

Mixed asset fund sales are estimated at about €4bn for the month, but there are indications that sectors that until recently were popular, such as emerging market debt and high yield bonds, have been hit by increasing outflows. Japanese and US equity funds have attracted around €1bn in inflows each, the provisional figures for June suggest.


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