Brexit vote triggers flight from European equities
Outflows from European equities swelled to levels not even seen during the financial crisis after last month’s Brexit vote.
Fund Flows
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Investors rush to sell equity funds after Brexit vote
Brexit has already cost active managers dearly. Over the month of June, European investors pulled €19.2bn from actively managed equity funds, Lipper reported today.
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HY bonds generate largest daily inflows ever
Bank of America Merrill Lynch data revealed 11 July was “the day when bears capitulated into risk assets” with investors flocking to high yield in droves.
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Asia-Pac fund sales beat developed markets in 2015
In 2015, net sales of regulated funds in Asia-Pacific for the first time outpaced sales in Europe and the Americas, according to data from the Investment Company Institute. Most of the sales growth came from money market funds.
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Bearish investors resort to indiscriminate selling
If fund flows are a reliable sentiment gauge, investors were at their most bearish since the autumn of 2011 on the eve of the Brexit vote. And the referendum outcome has only exacerbated this trend.
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Investors take refuge in the dollar
European investors hoarded cash in May. As Brexit-induced uncertainty dominated markets, they poured a net €14bn into USD money market funds, according to Lipper fund flows data.
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Spanish investors resume bond buying binge
2015 saw Spanish investors breaking with their long-standing habit of buying ever more bonds, with bond funds seeing net outflows for 10 out of 12 months last year. However, as government bond yields once again approach record lows, they have reversed course.
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Investors keep pouring money into fixed income ETFs
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.
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Asset managers could see a third knocked off profits
Increased competition and unfavourable markets could see asset managers’ profits squeezed by as much as 35% over the next two years, according to a report by McKinsey and Company.
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Investors rush out of equities and into corporate bonds
European investors have been selling out of equities this year and have piled into credit instead. Net monthly inflows into corporate bond funds and ETFs reached an all-time record in April, according to Morningstar data.
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European equities in grip of a sell-off
Short-term fund flows are known for their capricious nature. And recent months have shown that rule still holds. While flows into European equity funds were close to record highs in autumn last year, they have since edged deeply into negative territory.
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Blackrock reinforces dominance in European fund industry
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.