Fund Management

Investors Hit The Exits In European Long-Term Mutual Funds In January

Tom Burroughes Group Editor London 23 February 2016

Investors Hit The Exits In European Long-Term Mutual Funds In January

Concerns about mainstream markets appeared to prompt investors to dump bond and equity funds in January.

There were net outflows of €42.6 billion ($46.9 billion) from long-term mutual funds in Europe during January, data shows, suggesting investors preferred to pull out of funds than ride out stormy equity and related markets.

Figures from Thomson Reuters Lipper showed both bond and equity funds were hit by outflows. There were €20.2 billion of net outflows from bond funds, €19.7 billion from equity funds, and €5.3 billion of outflows from mixed-asset and “other” funds. On the other hand, there were inflows of €2.2 billion to alternative UCITS funds, and €1.0 flows into real estate products.

Money market products logged net inflows of €13.6 billion for January.

The national fund markets with the highest net inflows for January were France, driven by money market products (€21.7 billion), followed by Switzerland (€1.7 billion), Norway (€1.2 billion), Germany (€1.0 billion), and Belgium (€1.0 billion). Meanwhile, Luxembourg was the single market with the highest net outflows (-€33.5 billion). The UK (-€12.2 billion) and Ireland (-€6.7 billion) also saw considerable outflows.

The ten best-selling long-term funds together gathered net inflows of €5.7 billion for January.


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