The firm’s latest monthly snapshot of European fund flow trends showed redemptions from the European funds industry, including money market funds, totaled €25.2bn in June, reversing the inflows of €24.1bn achieved the previous month.
However, with money market activity excluded from the figures, total industry sales of €640m kept in positive territory, even if this was propped up by ETF activity of nearly €2bn.
“With investors clearly not shifting into money market funds – indeed cyclical French withdrawals pushed the European total for the asset class into €25.9bn of redemptions – it seems that, rather than rushing for safe havens, many investors have been sitting tight this month, with outflows much more restrained than could have been anticipated,” the report said.
The figures revealed the UK strengthened its place as the most buoyant local European fund market with inflows of €3.7bn, while the cross-border universe totaled €6.1bn.
“Sales in the bond arena hit a four month low of €3.8bn as high yield products — one of the success stories of 2011 — fell €3.6bn into the red,” the report showed. “Having said this, high yield products did suffer a similar outflow this time last year, so it is probably too soon to call the end of interest in such funds.”
However, the appetite for bond funds from some providers remained strong, with €3.2bn in sales for Franklin Templeton and €1.8bn for Allianz/Pimco topping the best-sellers list.
