Lipper: Bond fund sales dominate in Europe
UK bond fund sales doubled those of Germany in April while nervous investors withdrew €200m (£161m) from the pair’s equity markets.
Flows into the European funds industry reached €20.3 billion in April, taking the year-to-date total to €112 billion.
The latest Lipper report on the European fund industry sales trends have revealed that bond funds sales have dominated sales activity so far this year.
April saw sales of €11.1 billion in inflows with €8.2 billion related to cross-border funds; €1.6 billion went to the UK market and €790m to Germany.
The UK was ahead in terms of both estimated net sales and total net assets in April, recording €731.9 billion and €2.6 billion, respectively. By comparison, Germany recorded €438.4 billion in estimated net sales and total net assets of €748.1m, respectively.
Lipper reports that equity funds represented the biggest drag on sales activity as redemptions totalled €8 billion. Exchange-traded funds represented a “significant drag” on this figure as redemptions totalled €4.5 billion or 56% of the equity total. The iShares DAX ETF alone lost €4 billion over the course of the month.
Eight actively managed funds attracted inflows in excess of €400m in April, led by AllianceBernstein’s American Income Portfolio which reported €500m in inflows.
Surprisingly, UBS was the best performing at a group level as two of its institutional index tracking funds collected €3 billion in inflows, more than both Allianz/Pimco and Axa, with €1.8 billion and €1.2 billion respectively.
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