GRAPHIC-Germany equity fund flows tank as bets put on big Europe
(This story accompanies publication of our interactive graphic using data from Lipper showing global fund flows and performance by sector. You can open the full interactive graphic by clicking here: r.reuters.com/ryk34t)
By Joel Dimmock
LONDON Oct 18 (Reuters) - Europe equity funds posted a fifth straight month of net inflows in September, according to data from Lipper, contrasting sharply with a sustained exit from German equity funds as investors broaden out their bets on the continent's recovery.
Funds in Lipper's Europe Equity sector topped the table for global net inflows last month and saw their three-year cumulative flows hit positive territory for the first time. The Germany Equity sector languished at the bottom of the rankings, according to the estimates from fund research firm Lipper.
You can see the full interactive graphic of global fund flows and performance by sector by clicking here: r.reuters.com/ryk34t
German equity funds have been leaking money fairly steadily. Since the end of the first half of 2012, they have experienced net outflows in 12 months out of 15. Europe equity funds, meanwhile, are on a bit of a roll.
They have pulled in more than 16 billion euros in the last five months in the culmination of a turnaround which had its roots in renewed central bank stimulus commitments towards the end of the summer 2012. More recently, that tentative return of confidence for a pan-European investment case has been more robust.
It represents a stark reversal of fortune from their low point of the last three years - between June 2011 and June 2012 - when an exit from economic crisis-mode was in the balance and Europe equity funds experienced 11 months of net outflows.
You can see a graphic showing cumulative and month-by-month flows at Europe equity funds by clicking here: link.reuters.com/nes83v
The same data for German equity funds is here: link.reuters.com/pes83v
The global graphic of sector-by-sector flows and performance throws up some other intriguing results, not least of which is a milestone for Japan equity funds.
They have now breached $50 billion of net inflows over 12 months, close to double that achieved by the next best sector, as the market basks in the sustained afterglow of Abenomics.
There is also evidence of a move toward more adventurous debt plays in developed markets, with U.S., European and UK high yield funds making it into the list of top sectors by inflows in September.
Lipper estimates net flows by extrapolating a result from published assets under management and performance data. The global flows and performance numbers are drawn from more than 100,000 bond and equity mutual funds and exchange traded funds worldwide. (Graphic by Vincent Flasseur; editing by Stephen Nisbet)
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