Further findings for June Morningstar fund flows data include:
- Asset flows into equity funds declined to EUR 730 million for the month, the lowest level for the asset class since June 2013.
- EUR-cautious allocation funds were once again the top asset-gathering fund category, recording net inflows of EUR 2.7 billion in June. Conversely, the global large-cap blend equity category saw the highest June outflows; investors redeemed assets of EUR 3.9 billion, virtually all taken from the BlackRock ISF Developed World Index Sub Fund.
- Global emerging-markets bond funds demonstrated something of a comeback in the second quarter, with the highest net inflows (some EUR 2.5 billion) of any long-term category between April and June.
- The Woodford Effect spurred a resurgence in UK Equity Income, with the Woodford Equity Income fund taking in EUR 2.1 billion in June, virtually all of the inflows seen for the category; the fund’s strong inflows also helped Capita Financial (Woodford Equity Income’s administrator), land at the top of the rankings of June’s top asset gatherers.
- Conversely, KBC suffered the greatest June outflows—EUR 1.4 billion—among fund providers, bringing its quarter-to-date outflows to EUR 2.0 billion, the third-highest after Carmignac and PIMCO.
Morningstar’s Ali Masarwah of Morningstar’s European Fund Flows team, comments:
“High demand for cautious allocation funds fuelled lofty inflows for allocation funds overall, with flagship funds such as M&G Optimal Income profiting yet again. On the other hand, equity fund investors seem to have taken profits as Eurozone and US equity markets hit all-time highs in June. The June figures also indicate that the resurgence of demand for UK equity income funds rests predominantly on the launch of the Woodford Equity Income Fund, which collected a spectacular EUR 2.1 billion in just four weeks.”
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