Beverly Chandler, Opalesque London: Lipper’s Matthew Lemieux and Ed Moisson have published the annual review of the European fund industry, finding that sales across Europe totalled €230.4bn ($295bn) for 'long-term’ funds in 2012, the fifth best
year for the industry over the last decade (behind 2005-06 and 2009-10). However, the firm writes,
redemptions from money market funds totalled -€44.5bn ($56bn) over the year, and when
these withdrawals are included the industry’s sales shrink to €185.9bn ($237bn) - only the
seventh best total over the past 10 years.
Unsurprisingly the year’s sales were dominated by bond funds with inflows of
€225.2bn ($289bn). High Yield bonds and Emerging Market debt funds
together accounted for 40% of the net flows into the broader asset class.
Three groups attracted inflows into long-term funds
of more than €10bn ($12bn): PIMCO, AXA and BlackRock.
Funds described by Lipper as asset allocation products are funds where the individual managers are able to invest across the
spectrum as opportunities arise, often (but not always)
with an absolute return targeted as
part of an investment objective. Here Lipper finds that interest in such funds
has been strongest in the UK over the past year, "but it is
interesting to note that 115 asset allocation funds being
sold cross-border were launched over the past year,
with a further 51 launches of such products speci......................
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