European investors are shying away from long term mutual funds, as data from December revealed a negative picture for the asset class.
Figures from information provider Lipper showed that there were €2.3 billion of net outflows from long term mutual funds in December, with alternative Ucits funds seeing €2.5 billion in redemptions.
Investors pulled €2 billion out of bond funds and €0.8 billion from “other” products.
But investment into certain types of long-term mutual funds went some way to offset the outflows. Equity funds enjoyed inflows of €1.6 billion, followed by mixed asset funds which gained €1.1 billion.
Short term European bond products were the best selling fund type during December, with inflows of €2.6 billion.
Ireland had the highest inflows in December, with €23.5 billion, followed at quite some distance by Sweden, which saw €1.9 billion in additional assets. On the other side, France saw the most redemptions of any European fund domicile, with €16.7 billion of outflows.
US powerhouse Blackrock was the best selling asset manager, seeing net sales of €8.6 billion.
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