January was a “negative month” for the European fund industry, as estimated net outflows from mutual funds and ETFs topped €12 billion during the month, according to new figures.
The latest data from Refinitiv Lipper showed that overall fund flows amounted to net ouflows of €12.4 billion in January. Of the asset types, equity funds were the best-selling, recording net inflows of €38.6 billion in the same month.
Detlef Glow, head of EMEA research at Refinitiv Lipper, said: “Despite the deteriorating situation with regard to the Covid-19 pandemic and the sluggish market environment, it was not surprising that January 2022 was, in general, a negative month for the European fund industry.”
Promoters of mutual funds “faced outflows” of €38 billion, while promoters of ETFs saw inflows of €25.6 billion, he added.
Glow said: “Within this market environment and given the economic uncertainties, it is somewhat surprising that European investors sold money market products, which are normally considered as safe haven investments. As a result, the overall fund flow numbers are heavily impacted by the high outflows from money market products (-€56.3 bn).
“This means that long-term funds enjoyed estimated net inflows of €43.9 billion within this market environment. Nevertheless, it looks like European investors are taking rising interest rates, caused by the increased inflations rates around the globe, into consideration as they sold bond products.”
Within Europe, Switzerland was the fund domicile with the highest net inflows at €10.5 billion, followed by Germany with €7.2 billion and Belgium with inflows of €2.2 billion.
Meanwhile, BlackRock saw net inflows of €10 billion, making it the best-selling fund promoter in Europe for the month. It was ahead of second best-selling promoter Lumyna, with inflows of €4.7 billion and Vanguard, which saw inflows of €3 billion.
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