European mutual funds net €38bn in June

European mutual funds net €38bn in June

The European mutual funds industry enjoyed overall net inflows of €38.1bn ($51bn) into long-term mutual funds for June 2014, which drove net inflows for H1 2014 up to €244.1bn, according to research from Thompson Reuters.

Net inflows for June were driven mainly by flows into bond funds (€19.2bn), followed by mixed-asset funds (€12.1bn) and equity products (€6.0bn).

Property products (€0.8bn) as well as alternative/hedge funds (€0.5bn) saw modest net inflows, while commodity funds (-€0.001bn) and funds from the other category (-€0.5bn) faced modest outflows.

Enhanced money market products enjoyed net inflows of €0.3bn, but money market funds themselves faced net outflows of €10.9bn for June. Despite the June outflows, money market funds still posted net inflows of €6.0bn for H1 2014.

With regard to long-term funds, asset allocation products (€6.6bn) were the best-selling asset class, followed by bonds flexible (€3.1bn) and bonds global currencies (€2.9bn) as well as equities Europe (€2.9bn) and mixed-asset balanced (€2.7bn).

Outflows were suffered by equities global (-€3.4bn), bettered by bonds GBP corporate investment-grade (-€2.6bn) as well as bonds US dollar corporate high yield (-€1.8bn), guaranteed funds (-€1bn), and equities Germany (-€0.8bn).

BlackRock, with net sales of €2.7bn, was the best-selling group of long-term funds for June, ahead of UBS (€2.1 bn) and Woodford Investment (€2.1 bn).

Provisional figures for Luxembourg and Ireland-domiciled funds suggest that mixed-asset funds, with estimated net inflows of around €9.3bn, will be the best-selling products for July 2014.