The last time the mutual fund had to deal with net outflows of this scale was back in 2011, when the eurozone sovereign debt crisis was in full swing. However, many of the outflows back then were concentrated in bond funds. This time around, only equity funds have suffered.
In sharp contrast with the massive outflows from equity funds in June, bond funds saw net inflows of €1bn. Net flows for alternative Ucits funds were also positive, at €0.7bn. Multi-asset funds, however, were also a victim of the Brexit vote: they saw net outflows of €4bn.
Lipper didn’t give a breakdown of outflows from different equity asset classes. but it’s likely that the bulk of those were from European equity funds, as there are signs that EM equities have started seeing net inflows again.
USD denominated funds have profited from the Brexit vote. USD bond funds were the best-selling asset class in June. On top of that, investors put some €14bn into USD money market funds, while EUR money market funds suffered more than €20bn in redemptions. As the dollar is up 2.5% against the euro since the 23rd of June, these investors have made some money in the process.
