The largest amount of money flowing into UK funds in two years has helped lead a recovery in Europe's fund management industry, with investors rediscovering their appetite for riskier assets in June.

Figures from data monitor Lipper FMI showed UK managers received €4bn ($5.7bn) of inflows in June, more than at any point since the early months of 2007. This was spurred by investors taking on more risk rather than opting for investment grade corporate debt, which they had favoured earlier in the year.