FUND MANAGEMENT NEWS
NET OUTFLOWS FOR EUROPEAN FUNDS
Data from Lipper, the fund management research company, has found that European funds had a net outflow of €18bn in May. Money market funds saw the biggest outflows, while mixed asset and bond funds saw inflows slow to their lowest level for 12 months. Equity fund withdrawals were relatively modest at just over €1bn, helped by inflows into German equity markets. Overall, European equities saw the largest outflows with China and Japan in second and third place. BlackRock was the best overall group, attracting €5.5.bn of net European flows over the month.
FUND PLANS NEW SHARE ISSUE
Ludgate Environmental Fund is proposing to raise up to £15m through a new share issue. Before this can go ahead, Ludgate needs to get the approval of its current shareholders because its proposal is to issue shares that exceed 10 per cent of the company’s issued share capital. The shares will be issued at 97.15p per share, equal to the company’s unaudited net asset value (NAV) per share as at 30 June 2010 of 98.8p, less the interim dividend of 1.15p per share. The share issue would allow the company to increase its investments and broaden its portfolio.
BEARISH SENTIMENT HAS RETURNED
The bears are back in force. A net 12 per cent of fund managers believe that the global economy will deteriorate in the coming 12 months, the first negative forecast since February 2009, according to the Bank of America-Merrill Lynch survey of fund managers for July. Risk appetite has dipped with investors moving into cash and reducing exposure to cyclical stocks. Positions in global equities have also been scaled back and fund managers have been moving into bonds. Hedge funds have also reduced their net equity exposure to its lowest since March 2009.