Slightly positive flows in Asia partially offset redemptions from Europe in August, where greater market concerns over the sovereign debt crisis during the month resulted in $75 billion in net outflows.
“In the past, spikes in net redemptions in response to market volatility were typically short-lived and limited in scope,” said Enskat. “Strong outflows from long-term funds in both Europe and the U.S. in October and November 2008 were followed by a sharp rebound in flows in the first half of 2009. Until recently, three-month rolling flows have stayed at around $100 billion.
“The fund industry has faced and weathered uncertain economic times at many points in the past, but the current market volatility seems structurally different from prior crises.”
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