Fitch: Smallest high yield funds hit hardest by January outflows

European HY funds lose €1.4bn

In January European high yield funds reported their largest monthly outflows since August 2011, with smaller funds bearing the brunt of the losses, according to Fitch Ratings.

High yield funds in Europe suffered €1.4bn of outflows in January, and Fitch said managers will "need to brace" for more volatile conditions in the coming months. In the US, outflows amounted to $2.4bn in January and $7.7bn in December 2015. The December figure represents around 3.2% of the total AUM in the asset class. Meanwhile, a significant portion of these outflows came from smaller funds, with European funds holdings assets under €1bn hit the hardest; Only one European high yield fund with assets over €1bn suffered more than 10% in outflows. Fitch said several factors could a...