European investors increasingly risk averse
European investors have become increasingly risk averse throughout August, the latest Lipper fund flow data collected by Detlef Glow (pictured), Head of EMEA research, reveal.
While the European mutual fund industry enjoyed net inflows of €18.5bn, the majority (€11.5bn) were gathered by bond funds, followed by multi-asset products, which attracted €7.5bn.
Meanwhile, inflows into equity funds were now at €0.3bn, while inflows to hedge funds declined to -€0.5bn.
As investors appetite for risk declined, US Corporate High Yield Bonds, Global High Yield, European, American and UK equities were among the bottom selling sectors, while asset allocation, flexible bond, and bond global currency products performed relatively better.
This represents a sharp contrast compared to the average of the previous 12 month, where European and North American equities belonged to the best-selling sectors.
In terms of geographical allocation, Italy was once again the country with the highest net inflows of +€4.1bn, followed by Germany +€1.3bn and Spain with +€1.1bn. Net outflows were reported for the UK of -€0.3bn, Austria -€0.3bn and Turkey -€0.2bn.