$76 billion rushes out of European equity funds YTD

According to data compiled by EPFR, a global fund flow tracker, $76 billion has left European Equity funds so far this year. Last to last week, saw the biggest outflow ever recorded of $6.2 billion. Last week the outflow moderated but still more than $4 billion. European equity funds have seen 25 straight weekly outflows, since last week. The last time the European Equity funds have seen inflows were back in early February this year. More than $25 billion has left after the UK referendum.

Investors keep worrying that the UK referendum would cause greater uncertainties to the region, which eventually would lead to a slowdown. European Central Bank (ECB) has estimated that there could be half a percent hit to growth over next three years. In addition to that, the refugee crisis continues to take a toll on Europe and may lead to a further break-up of the European Union.

The biggest gainer of this under confidence and the outflows have been the emerging market funds, especially after the referendum. As the European equity funds bleed, EM equity funds have received more than $12 billion since the referendum. The last to last week has seen record inflows of around 4.3 billion and last week saw another 3.4 billion.