Fund sales hit two-year high

By on

European fund inflows reached a near two year peak in September with equity fund sales hitting positive territory for the first time in six months.

The latest European fund flows report from Lipper revealed long-term fund sales in Europe, excluding money market funds, hit a 23-month high of €28.9 billion, bringing the year-to-date total for these funds to €135.6 billion.

Investors withdrew from money market funds, primarily linked to cyclical activity in France, so that industry net sales including these products was €19.8 billion for the month and a year-to-date total of €123 billion.

While bond funds continued their strong run of recent months with €21.6 billion of inflows, the third month in a row above the €20 billion mark, equity funds returned to positive territory for the first time since March with net sales of €4.6 billion.

Much of the interest in this asset class was focused on global dividend funds, notably from PIMCO, DWS and M&G.

However, there was a revival of interest in  European equities according to the report with net sales of €3.1billion and €1.3 billion in pan-European and Euroland ETFs, respectively. The Threadneedle European SelectBlackRock Euro-Markets and MainFirst Top European Ideas funds were the main beneficiaries.

High yield bonds and emerging market debt were still popular with net sales €7.6 billion for the former and €4.5 billion for the latter across hard and local currency funds in September.

Mixed asset funds also enjoyed healthy inflows in September with €3.8 billion of sales, the highest total since February last year. Asset allocation funds reached inflows of €3.4 billion, with absolute return type products dominating, and this figure was no doubt boosted by the 27 fund launches this sector has recorded.