Figures from the data firm Refinitiv Lipper released this week showed there was roughly €40.9bn of net inflows into long-term European investment funds in May 2020. This included €5.3bn of net inflows into exchange-traded funds.
Ireland (+€30.8bn), Luxembourg (+€26.3bn) and the UK (+€5.6bn) were the fund domiciles with the highest net inflows overall. France (-€2.2bn), the Netherlands (-€0.6bn) and Italy (-€0.5bn) recorded the highest outflows.
Across Europe, money market funds notched up net inflows of €28.2bn. Money market funds accounted for about half of net inflows into Irish funds and a bit more than 40% for Luxembourg and France.
“Bond funds (+€29.6bn) were the best-selling long-term asset type for May,” Refinitiv Lipper observed. Ireland-domiciled funds led in the bond sector (+€13.4bn), followed by Luxembourg (+€10.1bn) and Switzerland (+€1.6bn). The biggest net outflows were found in Belgium-domiciled funds (-€0.2bn), followed by Denmark and the Netherlands (both -€0.1bn).
The next highest segment was equity funds, which posted net inflows across Europe of +€7.9bn. “For equity funds, products domiciled in Luxembourg (+€4.0bn) led the table, followed by the U.K. (+€2.0bn) [and] Sweden (+€1.7bn),” the data firm’s Detlef Glow wrote.
Mixed-asset funds had net inflows of +€5.7bn across Europe, led by Luxembourg (+€2bn), the UK (+€1.3bn) and Germany (+€0.7bn).
“On the other hand, alternative Ucits funds (-€6.0bn) were again the only asset type with net outflows from long-term mutual funds,” the research outfit said. Alternative Ucits funds domiciled in the Isle of Man collectively had net inflows of +€0.1bn, with Hungary (+€0.03bn) and Denmark (+€0.02bn) in second and third place, respectively. France (-€2.9bn), Luxembourg (-€1.2bn) and Italy (-€0.5bn) experienced the highest outflows in the category.
According to the memorandum: “JP Morgan was the best-selling fund promoter for May overall, with net sales of €16.8bn, ahead of BlackRock (+€13.7bn) and Morgan Stanley (+€4.2bn).”
The Refinitiv Lipper update covered 34 European countries and was issued on 22 June.