Net redemptions from the asset classes totalled €11.1bn in June, the highest monthly outflows since January 2008. Year-to-date, European equities have now seen net outflows of €32.1bn, with actively managed funds accounting for about two thirds of those.
Even though small cap funds suffered most from the Brexit vote, the bulk of outflows were from funds focused on large caps.
In the slipstream of the European equity outflows, redemptions from all other equity asset classes also accelerated. US equities, emerging market equities and Japan equities all saw net outflows in excess of €2bn in June.
While all of the above asset classes registered net outflows in May as well, the June outflows picture is exceptional. Never before, investors have been this negative about equities across the board. This suggests more and more investors are getting convinced the global equity bull market which started in 2009 now has really come to an end, as central banks in the Eurozone and Japan seem to have run out of options to stimulate a renewed rally.
