The European fund industry saw improvements compared to the summer months in October, according to Lipper’s Fund Flash for December (reporting on data from the end of October 2011).

Outflows of €19.7 billion ($25.6 billion) in the European fund industry improved upon the summer months, with cross-border funds inflowing into money market products helping to curb the losses. Long-term funds in Europe saw similar improvements, showing a reduction in redemptions from €41.8 billion in September to €15.5 billion in October.

A shaky political climate couldn’t stop increases in stock and bond indices in October, with total assets increasing by 2.3 per cent to a total of €5.2 trillion. This figure is still below the €5.5 trillion in total assets recorded at the end of 2010.

Group sales charts were topped by Allianz and PIMCO, with net sales of €1 billion. They were followed closely by Muzinich, with net sales of €680 million and Prudential and M&G, with net sales of €550 million.

After struggling in September with redemptions of €17.2 billion, bond funds in October saw much more manageable redemptions of €1.2 billion. Equity outflows were only €10.6 billion, close to half of September’s figure of €21 billion.

Absolute return funds were hit by redemptions across Europe of €700 million, bringing net sales year-to-date to €4 billion.

Mixed asset funds dropped into the red to  by €900 million, joining bond outflows of €1.2 billion and equity outflows of €10.6 billion. After redemptions of €18.5 billion over the past four months, high yield funds saw inflows of €3 billion finally.

"Safe haven products", such as gold and US dollar bond funds, made a strong showing in October. Commodity funds as a whole reversed September’s outflows of €1.3 billion with inflows of €520 million. The report suggests that, based on year-to-date outflows from long-term funds standing at €12.7 billion, a -€20 billion ending to 2011 is not unfathomable.