European actively managed mutual funds peaked at €4.3 trillion in February, but net flows fell to €25 billion from a high from $49.2 billion in January, according to a new report.

Cerulli Associates discloses this finding in the April 2013 edition of the “Cerulli Edge: European Monthly Product Trends.” The publication is one a suite of periodicals that cover issues and trends in asset management and distribution.

The report reveals that net new flows of passively managed mutual funds also dipped to €3.5 billion in February from €6.7 billion in January and €7.5 billion December. Passively managed assets under management totaled €586 billion in February, up from €571.9 billion in January and €562.3 in December.

By asset class, the report shows, equities accounted for most of the European actively managed mutual funds in February, totaling €1.8 trillion. This compares to €1.6 trillion and €591.6 billion in assets under management for bonds and mixed assets, respectively. Property, commodities and under other mutual funds accounted for an additional €123.3 billion, €16.6 billion and €237.7 billion, respectively.

The survey also discloses the following results for net flows of European actively managed mutual funds by asset class:

  • Equities: €22.1 billion (year-to-date)
  • Bonds: €32.2 billion
  • Mixed assets: €17.1 billion
  • Property: €1 billion
  • Commodities: €-0.1 billion
  • Others: €1.9 billion

The report indicates that Hungarian long-term mutual funds benefited from the greatest net new flows by country, growing 7 percent YTD in February. This compares with flow gains of 3.8 percent, 3.5 percent, 2.6 percent and 2.5 percent for the next four fastest growth rates by country: Ireland, Luxembourg, Norway and the Czech Republic, respectively.

Global equity funds attracted €2 billion in February, bringing 2013 takings to €6.4 billion. Black-Rock and State Street benefited from demand for passives: Their top global equity funds netted a combined €898 million. Dividend income funds gathered €2.3 billion of net inflows.   

Emerging market debt (EMD) funds secured €3.4 billion of net new flows in February, 69 percent of which went to local currency funds, the report adds.

“Concerns that the EMD markets are too small to absorb all those inflows are gaining ground,” thee report states. “BlackRock has advised institutional investors to double their emerging market country exposure to 8 percent of their total allocation.”