Investors regained confidence in the second quarter and sunk €164 billion into European funds, according to Morningstar data.
The European fund industry benefited from the “remarkable” upward market journey following the first three months of the year defined by volatility, the firm said.
Bonds drove the influx of cash into the industry, bringing in €105 billion in the three months to June end. Equity funds, meanwhile, turned round the heavy redemptions seen in the first quarter and pulled in €51 billion.
Not all equity losses suffered in the first quarter were compensated for, however. Tumbling markets in the first three months of 2020 chipped off more than €381 billion of total net assets invested in equity funds year-to-date by the end of June, according to the report.
Ali Masarwah, regional director of editorial research at Morningstar, said: “The first half of the year was a tale of two markets: While hell broke loose at the end of February as the crippling effects of the coronavirus pandemic on the global economy became clear and investors fled the fund market, asset prices bottomed out only one month later and started a spectacular recovery.”
By the end of June assets under management in long-term European funds rose to over €10.4 trillion including money market funds.
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