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During November the European mutual fund industry enjoyed net inflows of €2.3 bn into long-term mutual funds. With regard to the overall flow pattern, it seemed European investors were preparing their portfolios for a possible rate hike by the Federal Reserve Bank in the U.S. As in October, equity funds (+€5.2 bn) were the best selling asset type in Europe for November, followed by alternative UCITS (+€2.8 bn), mixed-asset funds (+€2.0 bn), and real estate funds (+€0.3 bn) as well as commodity funds (+€0.2 bn). On the other side of the table bond funds (-€7.8 bn) saw the highest net outflows, bettered by “other” products (-€0.5 bn).

These flows drove the estimated overall net sales of long-term investment funds up to a healthy €322.7 bn for the year to date.

Money Market Products

After strong net inflows for October, money market products enjoyed net inflows of €23.0 bn for November. These inflows for the money market segment brought the estimated overall net sales of money market products to a healthy €69.3 bn for the year to date. This flow pattern drove the overall sales of mutual funds in Europe to a positive €400.5 bn for the first 11 months of the year.

Money Market Products by Sector

Within the money market segment Money Market USD (+€15.6 bn) was the best selling sector for November, followed by Money Market GBP (+€11.1 bn) and Money Market EUR Leveraged (+€0.6bn). At the other end of the spectrum Money Market Global (-€1.5 bn) and Money Market EUR (-€0.9 bn) suffered the highest net outflows.

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

15 12 21 Graph 1 ENS by Asset Type

Source: Thomson Reuters Lipper

Fund Flows by Sectors

Within the segment of long-term mutual funds Equity Europe (+€2.1 bn) was once again the best selling sector, followed by Absolute Return EUR Medium-Term (+€1.9 bn), Bond EUR Corporates (+€1.8 bn), and Bond EUR High Yield (+€1.2 bn) as well as Equity Europe Small- & Mid-Cap (+€1.2 bn).

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

15 12 21 Graph 2 Sector Flows

Source: Thomson Reuters Lipper

At the other end of the spectrum Equity US (-€1.9 bn) suffered the highest net outflows from long-term mutual funds, bettered somewhat by Bond EMU Government (-€1.9 bn) and Bond NOK (-€1.4 bn) as well as Bond Emerging Markets Global in Hard Currencies (-€1.3 bn) and Bond EUR Short-Term (-€1.3 bn).

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

15 12 21 Graph 3 Flop Sector Flows

Source: Thomson Reuters Lipper

Fund Flows by Markets

Single fund market flows (including those to money market products) showed a mixed picture for November, with only 17 of the 34 markets covered in this report showing net inflows. Ireland (+€20.4 bn), France (+€5.2 bn), Luxembourg (+€3.8 bn), Germany (+€2.1 bn), and the United Kingdom (+€1.3 bn) were the domiciles with the highest overall net inflows, while Switzerland was the single market with the highest net outflows (-€2.2 bn), bettered somewhat by Norway (-€2.2 bn) and Spain (-€1.5 bn).

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

15 12 21 Graph 4 Market Flows

Source: Thomson Reuters Lipper

Within the equity sector funds domiciled in Germany (+€1.6 bn) led the table for November, followed by those domiciled in the United Kingdom (+€1.5 bn), Luxembourg (+€1.4 bn), Sweden (+€1.2 bn), and Belgium (+€1.2 bn). Equity funds domiciled in France (-€1.4 bn), Switzerland (-€0.4 bn), and Norway (-€0.2 bn) stood on the other end of the table.

For bond funds, products domiciled in Ireland (+€1.0 bn) led the table for November, followed by funds domiciled in France (+€0.9 bn), Belgium (+€0.04 bn), Portugal (+€0.03 bn), and the Czech Republic (+€0.01 bn). Meanwhile, Luxembourg (-€2.0 bn) was the domicile with the highest net outflows from bond funds, bettered somewhat by funds domiciled in Norway (-€1.8 bn) and Spain (-€1.7 bn).

With regard to mixed-asset products Luxembourg (+€1.6 bn) was once again the domicile with the highest net inflows, followed by funds domiciled in Germany (+€0.7 bn), Belgium (+€0.3 bn), Ireland (+€0.3 bn), and Italy (+€0.2 bn).On the other side of the table funds domiciled on the Isle of Man showed the highest net outflows (-€1.3 bn), bettered by funds domiciled in Switzerland (-€0.1 bn) and France (-€0.1 bn).

Fund Flows by Promoters

BlackRock, with net sales of €5.5 bn, was the best selling fund group for November overall, ahead of Goldman Sachs (+€5.4 bn) and Aviva (+€4.8 bn).

Table 1: Ten Best Selling Promoters, November 2015 (Euro Billions)

 15 12 21 Table 1 Top Ten Groups

Source: Thomson Reuters Lipper

Considering the single-asset bases, BlackRock (+€2.0 bn) was the best selling promoter of bond funds for November, followed by Aviva (+€0.5 bn), KBC (+€0.5 bn), Swiss Life (+€0.4 bn), and Neuflize (+€0.4 bn). Within the equity space Deutsche Bank (+€1.6 bn) stood at the top of the table, followed by BlackRock (+€1.3 bn), Columbia Threadneedle Investments (+€0.9 bn), and KBC (+€0.8 bn) as well as Allianz (+€0.6 bn). The French DNCA Finance (+€0.5 bn) was once again the leading promoter of mixed-asset funds, followed by Allianz (+€0.4 bn), JP Morgan (+€0.4 bn), and Pioneer Investments (+€0.3 bn) as well as Union Investment (+€0.3 bn).

Best Selling Funds

The ten best selling long-term funds gathered net inflows of €5.0 bn for November. The split of the ten best selling funds by asset type was not in line with the sales numbers, with five bond products among the ten best selling funds (+€2.2 bn) accounting for the majority of the inflows on this table, followed by three mixed-asset funds (+€2.0 bn) and two equity funds (+€0.8 bn).

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

15 12 21 Table 2 Top Ten Funds

Source: Thomson Reuters Lipper

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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