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Executive Summary

  • The European funds industry faced estimated net outflows of €11.1 bn from long-term mutual funds for June. Mixed-asset funds (+€12.1 bn) were the best selling asset class overall, followed by real estate products (+€0.2 bn) and commodity funds (+€0.03 bn).
  • Money market products faced overall net outflows of €34.7 bn for June.
  • The single fund market with the highest net inflows for June was Luxembourg (+€7.9 bn), followed by Switzerland (+€0.7 bn) and Denmark (+€0.2 bn). France (-€25.7 bn), Ireland (-€10.2 bn), and Italy (-€8.1 bn) stood on the other side.
  • Mixed-Asset EUR Flexible-Global (+€4.2 bn) was the best selling sector for June among the long-term funds.
  • JP Morgan, with net sales of €5.4 bn, was the best selling group for June, ahead of Vanguard (+€2.0 bn) and HSBC (+€1.6 bn).
  • The ten best selling funds gathered net inflows of €6.5 bn for June.

European Fund-Flow Trends, June 2015

European investors pulled money out of mutual funds during June 2015. That said, mixed-asset funds enjoyed opposite flows with estimated net inflows of €12.1 bn during the month, followed by real estate products with €0.2 bn and commodity funds with €0.03 bn. However, bond funds faced estimated net outflows of €17.5 bn, bettered by equity funds (-€2.5 bn), alternative/hedge products (-€2.1 bn), and ”other” funds (-€1.3 bn). These flows added up to estimated net outflows of €11.1 bn from long-term investment funds for June.

Despite these flows for June, the European investment industry enjoyed outstanding estimated net inflows of €296.5 bn into long-term investment funds for the first six months of 2015.

Money Market Products

Even money market products, an asset class that can be seen as a safe haven, faced massive outflows (-€34.7 bn) for June. Despite these outflows, money market funds still showed net inflows of €1.2 bn for the first half of 2015.

The flows for the money market segment brought the overall net flows for June to minus €45.8 bn and to a positive €297.8 bn for the first six months of the year.

Money Market Products by Sector

Within the money market segment Money Market USD (+€7.9 bn) was the best selling sector, followed by Money Market SEK (+€0.3 bn) and Money Market “Other” (+€0.02 bn). At the other end of the spectrum Money Market EUR suffered net outflows (-€28.4 bn), bettered by Money Market GBP (-€12.8 bn) and Money Market EUR Leveraged (-€0.3 bn).

Graph 1: Estimated Net Sales by Asset Type, June 2015 (Euro Billions)

15 08 24 Graph 1 ENS by Asset Type

Source: Lipper, a Thomson Reuters company 

Fund Flows by Sectors

Mixed-Asset EUR Flexible-Global (+€4.2 bn) was the best selling sector among the long-term funds, followed by Mixed-Asset EUR Conservative-Global (+€3.3 bn), Mixed-Asset EUR Balanced-Global (+€2.7 bn), and Equity Japan (+€1.9 bn) as well as Equity Eurozone (+€1.2 bn). At the other end of the spectrum Bond EUR suffered net outflows (-€5.0 bn), bettered somewhat by Absolute Return EUR (-€5.0 bn) and Bond EUR Corporates (-€3.5 bn) as well as Bond EMU Government (-€2.5 bn) and Equity Asia Pacific ex-Japan (-€2.3 bn).

Graph 2: Ten Top Sectors, June 2015 (Euro Billions)

15 08 24 Graph 2 Sector Flows
 
Source: Lipper, a Thomson Reuters company 

Fund Flows by Markets

Single fund market flows (including money market products) showed a negative picture for June, with only 6 of the 34 markets covered in this report showing net inflows. Luxembourg (+€7.9 bn), Switzerland (+€0.7 bn), and Denmark (+€0.2 bn) were the domiciles with the highest overall inflows, while France was the single market with the highest net outflows (-€25.7 bn), bettered by Ireland (-€10.2 bn) and Italy (-€8.1 bn).

Graph 3: Estimated Net Sales by Country, June 2015 (Euro Billions)

15 08 24 Graph 3 Market Flows
 
Source: Lipper, a Thomson Reuters company

Within the equity sector funds domiciled in Luxembourg (+€2.2 bn) led the table for June, followed by those domiciled in Ireland (+€1.6 bn), Switzerland (+€0.5 bn), Germany (+€0.3 bn), and Poland (+€0.01 bn). Equity funds domiciled in Belgium (-€2.0 bn), the United Kingdom (-€1.7 bn), and Sweden (-€1.0 bn) stood at the other end of the table.

For bond funds inflows were driven by funds domiciled in Denmark (+€0.6 bn), followed by funds domiciled in Switzerland (+€0.2 bn) and Liechtenstein (+€0.04 bn), while all other domiciles faced estimated net outflows from bond funds. Luxembourg (-€4.6 bn) was the domicile with the highest net outflows from bond funds, bettered somewhat by funds domiciled in Spain (-€3.2 bn) and Italy (-€3.0 bn).

With regard to mixed-asset products the flows were driven by net inflows into funds domiciled in Luxembourg (+€5.8 bn), followed by those domiciled in Spain (+€2.6 bn), France (+€1.6 bn), Belgium (+€0.9 bn), and Ireland (+€0.8 bn). Despite the general market trend, only 7 of the 34 countries covered in this report showed net outflows from mixed-asset products, with funds domiciled in the United Kingdom showing the highest outflows (-€1.0 bn), bettered somewhat by funds domiciled in Guernsey (-€0.4 bn) and funds domiciled in the Netherlands (-€0.1 bn).

Fund Flows by Promoters

JP Morgan, with net sales of €5.4 bn, was the best selling group for June overall, ahead of Vanguard (+€2.0 bn) and HSBC (+€1.6 bn).

Table 1: Ten Best Selling Groups, June 2015 (Euro Billions)

15 08 24 Table 1 Top Ten Groups
 
Source: Lipper, a Thomson Reuters company

Considering the single-asset bases, Eastspring—a member of the Prudential group (+€1.3 bn)—was the best selling promoter of bond funds for June, followed by Eurizon Capital—the asset management arm of Intesa SanPaolo (+€0.7 bn)—and Goldman Sachs (+€0.6 bn) as well as Laegernes Pensionsinvestering (+€0.6 bn) and Mercer (+€0.4 bn). Within the equity space Vanguard (+€1.4 bn) stood at the top of the table, followed by BlackRock (+€1.1 bn), Fidelity (+€0.7 bn), and Credit Suisse (+€0.7 bn) as well as Amundi (+€0.6 bn). Deutsche Asset & Wealth Management (DeAWM) (+€0.9 bn) was the leading promoter of mixed-asset funds for June, followed by the Spanish BBVA (+€0.9 bn), Allianz Global Investors (+€0.9 bn), and BlackRock (+€0.7 bn) as well as JP Morgan (+€0.6 bn).

Best Selling Funds

The ten best selling funds gathered inflows of €6.5 bn for June. With regard to the overall flows, it is remarkable that none of these ten funds were mixed-asset funds. The ten top funds were split into four equity funds (gathering €2.2 bn for June), four bond funds (gathering €2.5 bn), and two absolute return funds (gathering €1.8 bn).

Table 2: Ten Best Selling Funds, June 2015 (Euro Millions)

15 08 24 Table 2 Top Ten Funds
Source: Lipper, a Thomson Reuters company

Detlef Glow

Detlef Glow is Head of EMEA Research at Lipper, a Thomson Reuters flagship brand. In this position he is responsible for the Lipper research reports on the European ETF industry and special research reports on newsworthy market topics. Besides these tasks, he is acting as spokesperson for Lipper on TV and in print media, as well at conferences and expert panels. Detlef joined Lipper in mid 2005 from Feri Wealth Management, where he was Director of Portfolio Management, managing segregated accounts for high net worth individuals (HNWI). Prior to this he spent nine years with Tecis Holding AG, most recently as Head of Fund Research for Tecis Asset Management AG. In this role he was responsible for the quantitative and qualitative fund research for the Tecis fund of funds, the HNWI accounts and the recommendation list of funds for the financial adviser arm of Tecis. Detlef has an MBA focusing on Financial Services from the University of Wales/Cardiff, as well as a BA in Business Administration.”

Website: www.lipperweb.com

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