investors withdraw over 50bn in august

Funds across Europe saw redemptions of over 50bn in August, as market turmoil reached fever pitch and investors took flight.

investors withdraw over 50bn in august


Equity funds were the worst hit, with redemptions of €31.2bn, but bond and mixed asset funds also saw withdrawals of €13.9bn and €3.7bn respectively.

The data was compiled in Lipper FMI’s monthly fund flash, and showed for the third month in a row industry-wide outflows exceeded €20bn.

Lipper said this figure would have been higher if it were not for the allure of money market funds as a percieved safe haven.

Money market funds saw net sales of €28.3bn, reducing outflows across the industry to €25.6bn, rather than €53.9bn.

Lipper said: "The real difference comes when one strips out money market activity to look at ‘long-term’ funds and finds outflows of €53.9bn. The latest month is not only the worst since October 2008 (-€117.9bn), but also worse than most months that year, which averaged -€32.4bn."

High yield funds accounted for most of the outflows seen in bond bond funds, while postiive moves were seen into local Swedish products, Global Emerging and Asian bonds.

In the fixed income arena, Franklin Templeton’s products attracted sufficient sales to put it at the top of the group rankings, with net sales of €1.1bn.

Within the equity market, German equities fared best, but Lipper explained that ETFs – likely being used to short the DAX – had accounted for €2.4bn net sales in the region, while actively managed funds were in redemption.

One other equity sector which found some traction was gold, where two BlackRock products, one in Luxembourg and one in the UK, accounted for 70% of the sector’s €580m of net sales.



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