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The European mutual fund industry enjoyed overall net inflows of €50.3 bn for April 2014. As was to be expected, the majority of these inflows (+€49.0 bn) were gathered by long-term mutual funds. Roughly half of these flows were invested in bond funds (+€24.1 bn), followed by equity funds (+€12.0 bn) and mixed-asset products (+€11.0 bn). The positive trend for April was also reflected in the flows into the other asset types; commodity funds (+€0.7 bn), alternative/hedge funds (+€0.6 bn), and funds from the “other” peer group (+€0.6 bn) as well as property products (+€0.5 bn) enjoyed net inflows.

Money Market Products

After massive net outflows for February and March 2014 money market funds enjoyed net inflows of €1.1 bn for April. In addition, enhanced money market funds saw inflows of €0.2 bn for April.

As was the case for March money market GBP saw the highest net inflows (+€3.0 bn) for April, followed by money market global (+€0.3 bn) and money market Scandinavian currencies (+€0.1 bn). On the other side of the table money market USD suffered the highest net outflows (-€1.4 bn) of all money market categories covered in the FundFile database, bettered somewhat by money market EUR (-€0.8 bn) and money market CHF (-€0.2 bn).

Graph 1: Estimated Net Sales, April 2014 (Euro Millions)

14 06 16 Graph 1 ENS April 14 

Source: Lipper FundFile

Fund Flows by Sectors

Looking at the flows within the single fund categories in the long-term funds segment, asset allocation products (+€6.7 bn) were again the best selling asset class, followed by bonds emerging markets (+€3.8 bn) and bonds flexible (+€3.5 bn) as well as mixed-asset conservative (+€2.7 bn) and equities emerging markets (+€2.6 bn). At the other end of the spectrum guaranteed funds suffered net outflows (-€1.5 bn), bettered somewhat by equities Germany (-€1.0 bn) as well as bonds USD (-€0.7 bn), equities Greater China (-€0.5 bn), and equities North America (-€0.3 bn).

Fund Flows by Markets

Single fund market flows for long-term funds showed a mixed picture for April; 10 of the 33 markets covered in this report showed net outflows. The net inflows were dominated by the flows into funds domiciled in the international fund hubs, i.e., Luxembourg and Ireland (+€31.5 bn). The single market with the highest net inflows was the United Kingdom (+€3.5 bn), followed by Italy (+€3.4 bn) and Spain (+€2.4 bn). Meanwhile, Belgium (-€0.5 bn), Russia (-€0.2 bn), and Austria (-€0.1 bn) stood on the other side.

Graph 2: Estimated Net Sales by Country, April 2014 (Euro Millions)

14 06 16 Graph 2 ENS by Market

Source: Lipper FundFile

Fund Flows by Asset Type

Within the bond sector funds domiciled in the international cross-border hubs (+€16.5 bn) dominated the scene, followed by funds domiciled in Spain (+€1.7 bn), Sweden (+€1.3 bn), and Germany (+€1.0 bn) as well as France (+€0.9 bn). On the other side Belgium (-€0.6 bn) was the domicile with the highest net outflows from bond funds, bettered somewhat by funds domiciled in Austria (-€0.2 bn) and Russia (-€0.2 bn).

The international cross-border hubs (+€9.0 bn) also dominated the scene in the equity segment, followed by funds domiciled in the United Kingdom (+€1.5 bn), Sweden (+€0.5 bn), and Switzerland (+€0.5 bn) as well as Italy (+€0.5 bn). On the other side of the table Germany was the domicile with the highest net outflows from equity funds (-€0.3 bn), bettered somewhat by funds domiciled in The Netherlands (-€0.2 bn) and Belgium (-€0.1 bn).

Fund Flows by Promoter

BlackRock, with net sales of €4.1 bn, was the best selling group of long-term funds for April, ahead of JP Morgan Asset Management (+€2.5 bn) and Deutsche Asset & Wealth Management (+€2.0 bn) as well as Allianz Global Investors (+€1.5 bn) and Prudential/M&G (+€1.3 bn).

Graph 3: Market Share of the Ten Best Selling Groups, April 2014 (%)

14 06 16 Graph 3 Market Share Promoter 

Source: Lipper FundFile

On a single-asset basis BlackRock was the best selling promoter of bond funds (+€2.4 bn) for April, followed by Prudential/M&G (+€1.3 bn) and JP Morgan Asset Management (+€1.2 bn). Within the equity space JP Morgan Asset Management (+€1.0 bn) stood at the top of the table, followed by BlackRock (+€1.0 bn) and Source (+€0.9 bn).

Best Selling Funds

The best selling fund in Europe during April was Scottish Widows Corporate Bond—from the bonds GBP corporate investment-grade category—with estimated net sales of €0.9 bn, followed by M&G Optimal Income Fund—from the bonds flexible category (+€0.8 bn)—and Swedbank Robur International-Total Return Fixed Income—from the bonds SEK category (+€0.8 bn).

The views expressed are the views of the author, not necessarily Thomson Reuters’.

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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