Monday 23 February 2009

Record outflows might signal bottom

Outflows from Europe’s beleaguered fund industry hit a record high in the fourth quarter of 2008 as resurgent market volatility in the wake of the Lehman Brothers collapse saw investors accelerate their rush for the exits. (PDF page 1, PDF page 2, PDF page 3)

However, there are tentative signs that the worst may be over with tumbling deposit account rates leading wealthier investors, in particular, to look afresh at corporate bond and equity income funds.

Across the continent, flows into equity funds turned positive in November and December, while in some markets, such as the UK, flows into bond funds were positive for the fourth quarter in aggregate.

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