In its latest statistics on worldwide investment fund assets and flows, the European Fund and Asset Management Association also noted that cash inflows to all funds remained positive in Q2.
Net cash inflows for the period were €147bn, compared to €102bn in the first quarter of the year, although it remains to be seen whether asset flows for the third quarter will maintain this positive trend.
The breakdown by asset class showed equity funds registered reduced inflows in Q2, down at €16bn from €45bn in the previous quarter.
Bond funds on the other hand saw net inflows for the quarter jump to €70bn up from €42bn in the first three months of the year.
Meanwhile, money market funds recorded net outflows of €59bn in the three months to the end of June, which showed a slowing of redemptions compared to the €74bn witnessed in Q1.
The reduction of outflows from money market funds is almost certainly a trend that will have continued into the third quarter, as statistics released by the IMA recently showed the sector in favour during recent market volatility.
In its latest report the IMA said net retail sales of money market funds totalled £84m in August, their highest monthly sales since March 2006.
Looking at EFAMA’s report on a regional basis reveals a stronger appetite for equity funds in Europe compared to the US.
Equity fund sales in Europe saw a €3bn increase in inflows compared to the previous quarter, while in the US equity funds recorded net outflows of €7bn, down from inflows of €30bn in the previous quarter.
Across both markets bond sales increased, showing greater investor demand for fixed income products during the second quarter of the year.
