Investors continue to funnel funds from Europe to EM
Emerging markets saw strong net inflows in August and September while outflows from European equity funds continue relentlessly.
Emerging markets saw strong net inflows in August and September while outflows from European equity funds continue relentlessly.
Emerging market debt ETFs saw record net inflows of $5.8bn over the third quarter globally, according to Blackrock. Total inflows this year have already beaten the previous full-year record set in 2012.
The same research house that slammed smart beta ETFs earlier this year for being too expensive compared to plain vanilla index trackers has now found that the former are gaining market share, while fees are being reduced.
Flows into United States equities exchange-trade products reached their highest level since December 2014 in July, according to data from BlackRock.
The Federal Reserve’s decision to hold rates at 0.25-0.5% announced last night surprised nobody, but the accompanying rhetoric suggested a more hawkish stance is emerging.
The only certainty for Blackrock in today’s highly uncertain world is that central banks around the world will remain dovish. In Europe, they will even print more money.
Bond ETFs remained popular with investors globally last month while outflows from equity trackers continued apace. According to data from Blackrock, European investors poured $2.6bn (€2.3bn) into fixed income ETFs in May.
The Leave campaign is somehow gaining momentum, making the outcome of the upcoming Brexit referendum increasingly uncertain. This uncertainty will have far-reaching market implications in the short term, as a Leave vote would likely shock global markets, Blackrock warned today.
European investors have been pouring unprecedented amounts of money into fixed income ETFs this year, while they are taking money out of equity ETFs, according to data from Blackrock.
Blackrock now manages more of European investors’ money than the next two largest asset managers combined after the US-based asset manager saw strong inflows during the first quarter of 2016, according to data provided by Lipper.
A Brexit offers a lot of risk with little obvious reward; leading to lower UK growth and investment, and potentially higher unemployment and inflation, said BlackRock.
In 2015, emerging market equity ETPs had outflows for the third consecutive year, while global ETPs had record high inflows, according to a Blackrock report.