At the same time the gap between bond inflows and equity class outflows is getting wider.
According to the European Fund and Asset Management Association (EFAMA), Ucits registered net outflows in July of €14bn (£12.1bn) which is an improvement on the outflows of €29bn in June. EFAMA puts the fall down to reduced net outflows from money market funds and an increase in the net sales of bond funds.
Equity funds saw €1bn of outflows in July, compared to €3bn in June, while bond funds enjoyed a rise in net inflows to €6bn having broken even in June.
Money market funds continued to record large net outflows in July with net withdrawals amounting to €25bn during the month, compared to outflows in June of €36bn.
Sales of non-Ucits products increased although the total of €6bn inflows was down from June’s €8bn.
Bernard Delbecque, director of economics and research at EFAMA, said: “Negative surprises regarding the pace of global economic growth prompted caution among investors and flows into bond funds. Despite these developments and the decline in stock prices, equity funds managed to avoid a sell-off from investors in July.”