The first month of the year saw “overall net outflows of €7bn from long-term investment funds”, according to figures published by Lipper at Refinitiv, a data provider, on 24 February.

Detlef Glow, head of Lipper EMEA research, wrote:

“France (+16.0bn), driven by money market products (+€19.1bn), was the fund domicile with the highest net inflows, followed by Sweden (+€2.6bn), Switzerland (+€2.3bn), Germany (+€0.8bn) and Norway (+€0.2bn). On the other side of the table was Luxembourg (-€9.9bn), the fund domicile with the highest outflows, which was bettered by the United Kingdom (-€6.8bn) and Ireland (-€3.0bn). It is noteworthy that the flows in Ireland and Luxembourg were caused by in- and outflows from money market products, -€7.1bn and -€5.8bn respectively.”

Glow stated that:

“January was the ninth month in a row long-term mutual funds posted net outflows after 16 consecutive months of net inflows.”

European bond funds were the best selling type of long-term mutual fund, with net inflows of €12.7bn, including +€6.3bn into Luxembourg-domiciled structures. Real estate funds were the second best selling segment, with net inflows of €1bn across Europe. Money market funds overall also ended January 2019 ahead (+€3.8bn).

Almost all other asset types registered net outflows, stated the Lipper funds flow report. Alternative Ucits recorded the biggest net outflows (-€7.7bn), led by €2.5bn leaving Luxembourg-domiciled funds. Luxembourg also led the pack with €3bn in net outflows out of a total €3.5bn exiting mixed asset products.

Equity funds faced net outflows of €7.4bn, including from those based in Luxembourg, the domicile with the second biggest net outflows (-€3.8bn) behind the UK (-€4.7bn).