It seems like the concerns of European investors regarding general economic growth and, therefore, declining earnings, are gone. This is in spite of continued uncertainty over Brexit and the trade war between China and the U.S. As a result, November was the ninth month during which long-term mutual funds posted net inflows this year. Equity funds (+€24.0 bn) were the best-selling asset type in the segment of long-term mutual funds, followed by mixed-assets funds (+€7.6 bn), bond funds (+€5.8 bn), and real estate funds (+€0.8 bn). Conversely, “other” funds (-€2.5 bn), alternative UCITS funds (-€1.5 bn), and commodity funds (-€0.001

The positive fund-flows trend in Europe accelerated in July. Consequently, July was the fifth month long-term mutual funds posted net inflows this year. Taking the current interest rate environment into account, it was surprising that bond funds (+€37.7 bn) were once again the best-selling asset type in the segment of long-term mutual funds, followed by equity funds (+€9.4 bn) and commodity funds (+€0.9 bn). All other asset types faced outflows: alternative UCITS funds (-€3.5 bn), mixed-asset funds (-€1.3 bn), real estate funds (-€0.04 bn), and “other” funds (-€0.004 bn). These fund flows added up to overall net outflows of €43.2

Jake Moeller discusses the “Brexit” fallout with the CIO of Kames Capital–Stephen Jones