European investors gradually adjusted their cautious outlook on the UK despite overall bearish fund data across the continent for the past five months.
Non-euro currency markets stood out in October, having been the only ones to attract moderate in-flows amid an overall bearish market climate.
Throughout September, European mutual funds reported net out-flows of €40.5bn (£35.6bn) with investors pulling money out of all major asset classes, the latest data from Lipper at Refinitiv reveals.
Among others, bond funds reported net out-flows of -€8.9bn, followed by alternative Ucits (-€8bn), mixed asset funds (-€1.9bn), equity funds (-€1.3bn).
Euro denominated money market funds reported the sharpest out-flows (-€15.2bn) in withdrawals, while GBP and NOK denominated money market funds reported modest in-flows of €0.3bn and €0.2bn respectively.
This pattern was also replicated in fund flows by country, with the UK’s fund market reporting the highest net in-flows at €2bn, followed by Switzerland (€1.1bn) and Norway (€0.4bn), while the majority of European fund markets reported net out-flows, suggesting that investors turned increasingly wary on the outlook for the eurozone.
