Fund redemptions slow slightly in September
From Products Nov 10 2011 BY: Esther Armstrong
, Senior Reporter
, Portfolio Adviser
Long-term funds in Europe suffered redemptions of €46.2bn in September, as continued market volatility in the month sent investors running scared.
This followed outflows of over €50bn in August when investors’ fear reached fever pitch.
According to Lipper FMI's monthly snapshot, redemptions from equity funds did slow slightly, from €31.1bn in August to €21.2bn in September.
But bond fund outflows picked up this slack, with redemptions increasing to €17.4bn from €13bn a month earlier.
The Lipper report said: "Fixed income sectors that had only recently been vying for the greatest spoils from investors are now to be found languishing in a sea of red.
"Emerging market debt (outflows of €3.4bn) and Global bonds (-€3bn) were the hardest hit, while different High Yield sectors of various currencies suffered again."
Meanwhile corporate bonds denominated in dollar and sterling picked up inflows of €840m and €500m respectively.
Regionally, only three fund markets saw inflows during the month: the UK, Czech Republic and Romania.
While a mix of equity and bond sales saw Prudential/M&G attract the largest proportion of sales by one group (€600m), ahead of Comgest (€430m) and Threadneedle (€370m), whose sales were driven by impressive equity inflows, Lipper said.