Finance: Cross-border funds have left an indelible mark on both January 2013 and full year 2012 inflow statistics, according to research firm Lipper.
January 2013 was a record-breaking month for single-market and cross-border funds in Europe, while cross-border funds have more than doubled their market-share over the past ten years, two new reports have said.
European cross-border funds attracted inflows of €43.5 billion in January, “a one-month sales total that is the largest in Lipper’s record books,” the mutual fund research firm said on Tuesday.
The “Lipper Fund Flash” also reported January fund sales across the continent were €54.4 billion “the highest one month total in Europe for seven years.”
For both figures, Lipper was referring to “long-term” funds, as opposed to money market funds.
PIMCO had net January sales of €4.1 billion, while BlackRock had €3.7 billion and Franklin Templeton had €3.5 billion.
Shift in market-share
In a separate report, the research firm said that cross-border funds received the lion’s share of asset inflows in 2012.
Last year, cross-border funds--those “generating more than 20% of their assets from a second market”--attracted inﬂows of €220.7 billion in 2012, the second highest figure in the past decade, Lipper said in its “European Fund Market Review 2013 Edition,” which was published Monday.
“Interest in cross-border equity funds had already clearly picked up in the last four months and sales reached €23.3 billion for the year, although appetite for bond funds still dominates, with their one year total reaching a whopping €182.1billion,” Ed Moisson, the firm’s head of UK and cross-border research, wrote in the report.
Cross-border funds “now account for 45% (€2,662.9 billion) of European industry assets. This has risen from 21% of at the end of 2001.”
This shift has led “to the longer-term factors that have helped boost the cross-border industry, including both organic (for example providing products not available locally) and structural reasons (the decisions of some fund companies to re-domicile their funds to Luxembourg or Ireland in order to expand their investor base).”
In 2012, PIMCO saw the highest levels of long-term fund inflows, €35.1 billion, while AXA, including AllianceBernstein, recorded €24.0 billion, and BlackRock saw €14.8 billion.
Worldwide, European funds accounted for around one third of global fund assets, while the US represented roughly half, Lipper reported.
However, “a sizeable portion of European-domiciled UCITS’ inﬂows come from non-European investors.” The research firm calculated that “among the largest cross-border groups, 26% of assets are sourced from investors based in countries outside Europe.”