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lipper research bond outflows gain momentum

The European funds industry amassed net inflows of 3.5bn in August, with Italy, Spain and the UK taking the lion’s share of assets, according to Lipper


The inflows lifted year-to-date estimated net sales to €157.7bn (including money market funds).

Bond funds saw outflows of €6.3bn, but remained the best-selling sector year-to-date, having drawn in net inflows of €91.2bn. Short-term bond strategies maintained their popularity, with inflows of €1.8bn.

European equities topped the sales charts for August after the eurozone emerged from recession, with inflows of €3.4bn. Asset allocation strategies also fared well, gathering €3.2bn in net new assets. Emerging market bond funds remained among the weakest sectors in terms of fund flows.

Deutsche Asset and Wealth Management was the best-selling group for August, with net sales of €1.2bn, followed by JP Morgan and BlackRock (both €0.8bn).

The five best-selling funds were: Pimco GIS Diversified Income Duration Hedged, BlackRock Index Selection – Developed World Index, Franklin European Growth, Babson Capital Global Loan and La Caixa Group’s Foncaixa Rentas 2016.

The funds with the strongest year-to-date inflows are: Templeton Global Total Return, M&G Optimal Income, Pimco GIS Unconstrained Bond, Standard Life GARS and Pimco GIS Income.

According to Lipper, provisional September data for Luxembourg- and Ireland-domiciled funds shows that equity and mixed-asset strategies achieved net inflows of about €4.7bn and €2.2bn respectively. In contrast, bond funds suffered net outflows of some €2.2bn.