wrapper

European Fund-Flow Trends, November 2016

November showed a negative picture for long-term mutual funds; the European fund promoters faced net outflows from bond funds (-€19.2 bn), bettered by alternative UCITS funds (-€1.0 bn), mixed-asset products (-€0.9 bn), and “other” products (-€0.1 bn). On the other side of the table equity funds (+€6.7 bn) seemed to be back in the favor of European investors; these products were the best selling asset type in the long-term segment for November, followed by commodity funds (+€0.3 bn) and real estate funds (+€0.3 bn). These fund flows added up to overall net outflows of €14.0 bn from long-term investment funds for November. Exchange-traded funds (ETFs) contributed €4.7 bn to the inflows. These flows may indicate that European investors were trying to anticipate the possibility of increasing interest rates. A more detailed look at the sector level shows that they in fact did reduce some of their emerging markets and corporate bond exposure.

Money Market Products

Money market products (+€14.2 bn) were once again by far the best selling asset type for November. Besides mutual funds investing in money market instruments, ETFs investing in these instruments also enjoyed net inflows (+€0.1 bn).

This flow pattern led the overall fund flows to mutual funds in Europe to net inflows of €0.2 bn for November. With these overall inflows the European fund industry enjoyed net inflows of €252.0 bn over the course of 2016 so far.

Money Market Products by Sector

Money Market USD (+€10.1 bn) was the best selling money market sector for November, followed by Money Market EUR (+€2.9 bn) and Money Market GBP (+€2.2 bn). At the other end of the spectrum Money Market Global (-€0.9 bn) suffered the highest net outflows, bettered somewhat by Money Market SEK (-€0.4 bn) and Money Market CHF (-€0.3 bn). Comparing this flow pattern with the flow pattern for October showed that European investors further increased their positions in the U.S. dollar and bought further back into the euro as well as the British pound sterling.

Graph 1: Estimated Net Sales by Asset Type, November 2016 (Euro Billions)

16 12 19 Graph 1

Source: Thomson Reuters Lipper

Fund Flows by Sectors

Within the segment of long-term mutual funds Equity Global (+€3.8 bn) was the best selling sector, followed by Equity US (+€3.3 bn), Bond CHF (+€2.8 bn), and Equity US Small- & Mid-Cap (+€2.2 bn) as well as Bond Global (+€1.8 bn).

Graph 2: Ten Top Sectors, November 2016 (Euro Billions)

16 12 19 Graph 2

Source: Thomson Reuters Lipper

At the other end of the spectrum were the sectors that had been in the favor of European investors over the last few months. Equity Emerging Markets Global (-€3.6 bn) suffered the highest net outflows from long-term mutual funds, bettered somewhat by Bond Emerging Markets in Hard Currencies (-€3.0 bn) and Bond Emerging Markets in Local Currencies (-€2.8 bn) as well as Bond EUR Corporates (-€2.4 bn) and Bond EMU Government (-€1.9 bn).

Graph 3: Ten Bottom Sectors, November 2016 (Euro Billions)

16 12 19 Graph 3 Flop Sector Flows

Source: Thomson Reuters Lipper

Fund Flows by Markets

Single fund domicile flows (including those to money market products) showed a slightly positive picture for November, with 18 of the 34 markets covered in this report showing net inflows and 16 showing net outflows. France (+€4.3 bn), driven by money market products (+€3.8 bn), was the fund domicile with the highest net inflows, followed by Ireland (+€4.1 bn), Germany (+€2.3 bn), the United Kingdom (+€2.3 bn), and Switzerland (+€2.1 bn).On the other side of the table Luxembourg was the single fund domicile with the highest net outflows (-€12.9 bn), bettered by Italy (-€1.6 bn) and Norway (-€1.0 bn).

Graph 4: Estimated Net Sales by Fund Domiciles, November 2016 (Euro Billions)

16 12 19 Graph 4 Flows by Domicile

Source: Thomson Reuters Lipper

Within the equity sector, funds domiciled in Ireland (+€5.8 bn) led the table for November, followed by those domiciled in Belgium (+€2.4 bn), Germany (+€1.5 bn), France (+€0.7 bn), and Switzerland (+€0.6 bn). Equity funds domiciled in Luxembourg (-€5.0 bn), the United Kingdom (-€0.4 bn), and Italy (-€0.2 bn) stood at the other end of the table.

For bond funds, products domiciled in Switzerland (+€2.1 bn) led the table for November, followed by funds domiciled in the United Kingdom (+€0.9 bn), Finland (+€0.3 bn), and Sweden (+€0.3 bn) as well as the Netherlands (+€0.1 bn). Meanwhile, Luxembourg (-€15.7 bn), Ireland (-€3.2 bn), and Italy (-€0.9 bn) were the domiciles with the highest net outflows from bond funds.

With regard to mixed-asset products Germany (+€0.3 bn) was the domicile with the highest net inflows, followed closely by funds domiciled in the United Kingdom (+€0.3 bn), Spain (+€0.2 bn), Denmark (+€0.1 bn), and Austria (+€0.1 bn). On the other side of the table funds domiciled in Luxembourg showed the highest net outflows (-€0.8 bn), bettered somewhat by funds domiciled in Italy (-€0.5 bn) and Belgium (-€0.2 bn).

Ireland (+€0.2 bn) was the domicile with the highest net inflows into alternatives for November, followed by Norway (+€0.04 bn), Denmark (+€0.01 bn), and Switzerland (+€0.01 bn) as well as Hungary (+€0.00 bn). Luxembourg (-€0.8 bn), bettered by France (-€0.1 bn) and Sweden (-€0.1 bn), stood at the other end of the table.

Fund Flows by Promoters

Amundi, with net sales of €3.8 bn, was the best selling fund promoter for November overall, ahead of BNP Paribas (+€2.8 bn) and Credit Suisse Group (+€2.4 bn).

Table 1: Ten Best Selling Promoters, November 2016 (Euro Billions)

16 12 19 Table 1

Source: Thomson Reuters Lipper

Considering the single-asset bases, Credit Suisse Group (+€2.3 bn) was the best selling promoter of bond funds for November, followed by Eurizon Capital (+€0.9 bn), Vanguard Group (+€0.6 bn), and FundPartner Solutions (+€0.6 bn) as well as Royal London (+€0.6 bn). Within the equity space BlackRock (+€4.2 bn) stood at the head of the table, followed by KBC (+€2.3 bn), BNP Paribas (+€1.3 bn), and Source (+€0.6 bn) as well as Vanguard Group (+€0.6 bn). Flossbach von Storch (+€0.5 bn) was the leading promoter of mixed-asset funds in Europe for November, followed by Invesco (+€0.4 bn), Aviva (+€0.4 bn), and Allianz (+€0.4 bn) as well as Banco Posta Fondi (+€0.4 bn). Deutsche Bank (+€0.7 bn) was the leading promoter of alternative funds for the month, followed by Mercer (+€0.4 bn), Kairos Partners (+€0.2 bn), and Russell Investments (+€0.1 bn) as well as Jupiter (+€0.1 bn).

Best Selling Funds

The ten best selling long-term funds gathered at the share-class level total net inflows of €8.5 bn for November. The split of the ten best selling funds by asset type was not in line with the overall sales numbers, since bond funds (with five funds, +€5.0 bn) were the dominant asset type among the top-ten funds list, followed by equity funds (with four funds, +€2.9 bn) and alternative UCITS products (with one fund +€0.6 bn).

Table 2: Ten Best Selling Funds, November 2016 (Euro Millions)

16 12 19 Table 2 Best Selling 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

Press

Les clients vont-ils bientôt investir en ayant ...
La sortie de l’Union européenne va-t-elle faire ...
La mission du cycle de conférences organisé à ...

Press

Even spoilt Muscovites are surprised by the ...
Embraer presents the Phenom 300 Jet at ...
Following the success of “The Most ...

About Us

Shorex is a specialist media group for the wealth management industry and the high-end luxury market. Our purpose is to provide our partners, delegates and visitors with an effective networking platform where they can forge productive relationships and come away with strong ideas... read more