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The year 2014 continued to be a very successful one for the European mutual fund industry, with long-term mutual funds enjoying another €41.0 bn of net inflows for July. Once again, the majority of these flows were gathered by bond funds (+€18.6 bn), followed by mixed-asset products (+€13.0 bn) and equity funds (+€11.8 bn) as well as commodity funds (+€0.1 bn). On the other hand, alternative/hedge funds (-€0.4 bn), property funds (-€0.5 bn), and funds from the “other” peer group (-€1.1 bn) suffered net outflows for the month.

Money Market Products

Along with long-term mutual funds, money market products enjoyed net inflows for July, with money market funds gathering €10.8 bn while enhanced money market funds gathered €0.2 bn. These inflows drove the overall flows for July up to €52.5 bn.

While money market EUR, in contrast to June, saw the highest net inflows (+€14.5 bn) of all the fund categories covered in the FundFile database for July, money market USD suffered the highest net outflows (-€7.4 bn) of all fund categories. This showed once again how active European investors use money market products in their asset allocation.

Graph 1: Estimated Net Sales, July 2014 (Euro Millions)
2014 09 22 DG01Source: Lipper FundFile

Fund Flows by Sectors

With regard to long-term funds, asset allocation products (+€6.6 bn) were once again the best selling asset class, followed by bonds EUR (+€4.1 bn) and mixed-asset balanced (+€3.1 bn) as well as equities Pacific ex Japan (+€3.0 bn) and bonds global currencies (+€2.9 bn). At the other end of the spectrum bonds USD corporate high yield suffered net outflows (-€5.0 bn), bettered by guaranteed funds (-€1.0 bn) as well as equities Europe (-€0.9 bn), bonds global high yield (-€0.8 bn), and convertible bonds and options (-€0.7 bn).

Fund Flows by Markets

The fund market inflows for long-term funds were dominated by funds domiciled in the international cross-border hubs (+€22.1 bn), followed by funds domiciled in Italy (+€5.3 bn), Spain (+€2.7 bn), and Switzerland (+€2.5 bn). Meanwhile, France (-€0.9 bn), Portugal (-€0.1 bn), and Greece (-€0.05 bn) stood on the other side.

Graph 2: Estimated Net Sales by Country, July 2014 (Euro Millions)
2014 09 22 DG02Source: Lipper FundFile

The inflows into equity funds were also dominated by international cross-border funds (+€9.6 bn), followed by funds domiciled in the United Kingdom (+€1.3 bn), Denmark (+€0.6 bn), Spain (+€0.5 bn), and Switzerland (+€0.5 bn). Funds domiciled in France (-€1.1 bn), Germany (-€0.4 bn), and Poland (-€0.1 bn) stood at the other end of the table.

Within the bond sector funds domiciled in the international cross-border hubs (+€7.1 bn) dominated the scene, followed by funds domiciled in Italy (+€2.4 bn), Switzerland (+€2.0 bn), and Germany (+€1.5 bn) as well as Spain (+€1.4 bn). On the other side Portugal (-€0.1 bn) was the domicile with the highest net outflows from bond funds, bettered somewhat by funds domiciled in Greece (-€0.03 bn) and Russia (-€0.02 bn).

The international cross-border hubs (+€6.0 bn) also dominated the mixed-asset sector, followed by funds domiciled in Italy (+€2.6 bn), Germany (+€1.4 bn), and Spain (+€1.3 bn) as well as France (+€0.6 bn). On the other side Poland (-€0.1 bn) was the domicile with the highest net outflows from mixed-asset funds, bettered somewhat by funds domiciled in The Netherlands (-€0.02 bn) and Latvia (-€0.001 bn).

Fund Flows by Promoters

BlackRock, with net sales of €4.0 bn, was the best selling group of long-term funds for July, ahead of Deutsche Asset and Wealth Management (DeAWM) (+€3.2 bn), JP Morgan Asset Management (+€2.9 bn), UBS (+€2.7 bn), and Vanguard (+€2.0 bn).

Graph 3: Market Share of the Ten Best Selling Groups, July 2014 (%)
2014 09 22 DG03Source: Lipper FundFile

On a single-asset basis UBS (+€2.0 bn) was the best selling promoter of bond funds for July, followed by BlackRock (+€1.8 bn) and DeAWM (+€1.4 bn). Within the equity space JP Morgan Asset Management (+€1.7 bn) stood at the top of the table, followed by Vanguard (+€1.5 bn) and BlackRock (+€1.4 bn). With regard to mixed-asset/asset allocation products the Italian Intessa San Paolo Group  (+€1.2 bn) led the table, followed by JP Morgan Asset Management (+€0.9 bn) and BlackRock (+€0.7 bn).

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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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