Investors withdrew €47.7bn from long-term funds domiciled in Europe in June, as the region had its worst record for monthly outflows since March 2020, according to Morningstar European asset flows data.
Net outflows climbed to €28.4bn, with fixed income funds suffering most. €84bn flowed out of bond funds, making the first half of 2022 the worst on record for the asset class. European money market funds shed €8bn.
Net redemptions in equity funds climbed to €12.1bn, though passive funds continued to have positive monthly flows.
Refinitiv: Equity funds see almost €7bn outflows in June
June was a negative month for all major asset classes. Investors withdrew €2.5bn from commodity funds, €2.1bn from alternative strategies and €1.7bn from diversified allocation funds.
Long-term Article 8 vehicles also shed €17bn, while Article 9 products took in €686m over the month. Article 9 funds were the only group to maintain a positive organic growth rate in the second quarter of the year, at 1.25%.
"Soaring inflation, supply chain strain growing recession fears, and great uncertainty surrounding the war in Ukraine are turning investors' sentiment sour," the report said.
Morningstar: European fixed income funds suffer €16.5bn net outflows in May
UK Government bond funds, designated in pounds, saw the highest net inflows at the Morningstar category level, gaining €3.5bn in June. Laggards included euro ultra short-term bond funds which experienced the largest net redemptions, reaching €3.9bn.
Pimco, Eurizon, and BlackRock suffered the biggest redemptions, while Aviva, CaixaBank and Lyxor came out on top. BlackRock lost nearly €2.9bn over the month.
AUM in long-term funds domiciled in Europe dropped to €10.7trn at the end of June 2022, down from €11.3trn as of the end of May.
