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Since mixed-asset products had been the darlings of European investors for quite a while, it was a big surprise to see that investors pulled money out of mixed-asset funds (-€0.3 bn) during August. That said, not only mixed-asset funds faced outflows. Equity funds (-€23.1 bn) suffered the highest estimated net outflows for August, bettered somewhat by bond funds (- €18.4 bn). On the other side of the table alternative/hedge products (+€3.4 bn), “other” funds (+€1.0 bn), and commodity funds (+€0.5 bn) as well as real estate products (+€0.4 bn) enjoyed net inflows. These flows added up to estimated net outflows of €36.5 bn from long-term investment funds for August.

Despite the outflows for August, the European investment industry still enjoyed healthy estimated net inflows of €256.9 bn into long-term investment funds for the year.

Money Market Products

While the major asset types faced outflows for August, money market products—an asset class that can be seen as a safe haven—enjoyed the highest net inflows (+€18.6 bn). Money market funds 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 August to minus €17.9 bn and to a positive €292.7 bn year to date.

Money Market Products by Sector

Within the money market segment Money Market EUR (+€14.6 bn) was the best selling sector, followed by Money Market USD (+€9.6 bn) and Money Market SEK (+€0.5 bn). At the other end of the spectrum only two peer groups suffered net outflows: Money Market GBP (-€6.6 bn) and Money Market HUF (-€0.04 bn).

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

15 09 21 Graph 1 ENS by Asset Type

Source: Lipper, a Thomson Reuters company

Fund Flows by Sectors

Within the segment of long-term mutual funds “Unclassified” funds (+€1.2 bn) was the best selling sector, followed by Equity Europe (+€1.1 bn), Bond EMU Government Short Term (+€1.1 bn), and Bond EMU Government (+€1.0 bn) as well as Equity Germany (+€0.8 bn).

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

15 09 21 Graph 2 Sector Flows

Source: Lipper, a Thomson Reuters company

At the other end of the spectrum Equity Global suffered net outflows (-€9.8 bn), bettered by Equity Asia Pacific Ex-Japan (-€4.6 bn) and Equity Emerging Markets Global (-€3.6 bn) as well as Bond Global (-€3.3 bn) and Bond Emerging Markets Hard Currencies (-€2.7 bn).

Graph 3: Bottom Ten Sectors, August 2015 (Euro Billions)

15 09 21 Graph 3 Flop 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 August, with only 10 of the 34 markets covered in this report showing net inflows. France (+€7.8 bn), the Netherlands (+€1.0 bn), Spain (+€0.3 bn), and Italy (+€0.1 bn) as well as Iceland (+€0.04 bn) were the domiciles with the highest overall inflows, while Luxembourg was the single market with the highest net outflows (-€9.1 bn), bettered by Germany (-€6.3 bn) and the United Kingdom (-€4.7 bn).

Graph 4: Estimated Net Sales by Country, August 2015 (Euro Billions)

15 09 21 Graph 4 Market Flows

Source: Lipper, a Thomson Reuters company

Within the equity sector funds domiciled in France (+€1.0 bn) led the table for August, followed by those domiciled in Ireland (+€1.0 bn), the Netherlands (+€0.6 bn), Spain (+€0.4 bn), and Denmark (+€0.2 bn). Equity funds domiciled in Luxembourg (-€8.7 bn), Belgium (-€7.2 bn), and Germany (-€6.7 bn) stood at the other end of the table.

For bond funds, products domiciled in the Netherlands (+€0.4 bn), followed by funds domiciled in Norway (+€0.1 bn), Sweden (+€0.1 bn), and France (+€0.1 bn) as well as the Isle of Man (+€0.1 bn) posted estimated net inflows, while all other domiciles faced estimated net flows around zero or outflows from bond funds. Luxembourg (-€12.1 bn) was the domicile with the highest net outflows from bond funds, bettered by funds domiciled in Ireland (-€1.7 bn) and the United Kingdom (-€1.7 bn).

With regard to mixed-asset products Germany (+€0.5 bn) was the domicile with the highest net inflows, followed by funds domiciled in Spain (+€0.4 bn), Belgium (+€0.3 bn), Luxembourg (+€0.3 bn), and Italy (+€0.1 bn). Despite the general market trend, only 9 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 net outflows (-€1.6 bn), bettered by funds domiciled in Switzerland (-€0.1 bn) and France (-€0.1 bn).

Fund Flows by Promoters

Amundi, with net sales of €4.7 bn, was the best selling group for August overall, ahead of Goldman Sachs (+€3.8 bn) and JP Morgan (+€3.0 bn).

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

15 09 21 Table 1 Top Ten Groups

Source: Lipper, a Thomson Reuters company

Considering the single-asset bases, Deutsche Asset & Wealth Management (+€0.9 bn) was the best selling promoter of bond funds for August, followed by BlackRockEurizon Capital—the asset management arm of Intesa SanPaolo (+€0.8 bn)—and the Dutch Think Capital (+€0.7 bn) as well as Fideuram—the asset management arm of the Italian private bank Fideuram Bank (+€0.6 bn), and Robeco (+€0.5 bn). Within the equity space BlackRock (+€1.7 bn) stood at the top of the table, followed by UBS (+€1.3 bn), Vanguard (+€1.2 bn), and Amundi (+€1.0 bn) as well as Fideuram (+€0.6 bn). Investec (+€0.4 bn) was the leading promoter of mixed-asset funds for August, followed by Fideuram (+€0.4 bn), Union Asset Management (+€0.3 bn), and Union Investment (+€0.2 bn) as well as KBC (+€0.2 bn).

Best Selling Funds

The ten best selling funds gathered net inflows of €31.2 bn for August. With regard to the overall flows it is not surprising that seven of these ten funds were money market products (gathering €21.1 bn). The other three funds among the top ten were two equity funds (gathering €9.6 bn) and one bond fund (gathering €0.9 bn).

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

15 09 21 Table 2 Top Ten Funds

Source: Lipper, a Thomson Reuters company

With regard to these results it is noteworthy that UniGlobal Vorsorge (+€8.2 bn), the best selling fund for August, generated its inflows from a change in the underlying funds in pension products managed by Union Investment, while its counterpart—the UniGlobal fund (-€8.1 bn)—faced the highest net outflows for August.

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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