Daily flow data during 4Q11 suggests investors are losing patience with the Eurozone’s inability to contain its long running crisis, with flows remaining negative despite the strong market rally at the end of November,EPFR Global said in a recent report on Europe.
EPFR Global-tracked Europe Equity Funds finished 2009 recording inflows for the first time in over seven years. Since then, they have suffered steady outflows in response to the Greek debt crisis, with both, investors and fund managers, reducing overall exposure to the region and rotating more of what they retain to Germany, the data provider said in the report.
On the fixed income side, investors continued to avoid direct exposure to Developed European debt with Europe Bond Funds tracked by EPFR Global posting outflows for 40of the 46 weeks year-to-date.
However, Global Bond Fund managers, whose funds collectively took in fresh money every month for over two years through mid-3Q11, have been reluctant to pull back from the region, the report added.