Flows flee European equity post ECB corporate QE – BAML
European equity funds reported $4.8bn (€4.2bn) in outflows last week, the largest in 80 weeks, Bank of America Merrill Lynch revealed on Friday.
Fund Flows
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Investors flock to corporate bonds as markets recover
Corporate bond funds are strongly back in fashion after a long streak of outflows, as investor confidence inched up in March and the ECB announced the inclusion of corporate bonds in its QE programme. Emerging market debt even witnessed the biggest net monthly inflows in more than two years, according to Morningstar’s latest fund flows…
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Closed architecture gains ground again – Cerulli
Independent asset managers were the dominant players in Europe in the years following the financial crisis, capturing 90% of all inflows. However, this trend has reversed since 2014. In the past two years, asset managers owned by banks and insurance companies have recaptured market share, according to research by Cerulli, the asset management consultancy.
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Investor exodus from defensive multi-asset funds
Multi-asset funds lost money for the second consecutive month in February, for the first time since March 2009. Funds that invest mainly in bonds have been bleeding most of late, while medium-risk funds actually saw net inflows.
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Investors sell off as markets trough
European investors did themselves a disservice in February. They sold out of pretty much all asset classes when markets hit (in some cases) multi-year lows before recovering their losses in the past couple of weeks. The outflows mainly hit active funds, as ETFs saw modest net inflows.
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Strategic bond funds – is their golden age over?
Flexible bond funds were many an investor’s favourite answer to the challenging yield environment. By being able to switch between different bond categories, a fund manager would be better equipped to hunt for the scarce yield available, was the idea. But it has lost its shine, and investors have started to abandon unconstrained bond funds.
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Alternative funds will outsize fixed income by the end of 2016, if trend continues
More assets will be invested in alternative investment funds than in fixed income globally by year-end if the current fund flows trend persists. Net flows into alternative funds saw double-digit growth for the second year in a row, according to a Morningstar report.
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High time for high-yield, the US equity substitute?
Those who believe that ‘risk-on, risk-off’ is consigned to the past look away now, with record inflows into US high-yield indicating that sentiment has shifted once again to the spicier end of the fixed income spectrum.
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European equity fund flows survive market crash
While European stocks were down some 5% in January, fund flows went the other way. European equities were the only asset class seeing net inflows over the month, apart from absolute return funds.
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Multi-asset funds see first outflows since 2011
Multi-asset funds saw their first net outflows in more than four years in January, according to fresh Morningstar data. The outflows were the biggest since October 2008.
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SLI third party inflows leap to £10.3bn
Standard Life Investments has reported its net third party inflows leapt to £10.3bn (€13.2bn) in 2015 from just £1.7bn in 2014.
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ETF investors face hangover after 2015 binge buying
European equity ETFs saw record inflows in 2015, according to Morningstar data. However, it has now turned out ETF investors only joined the party once the happy hour was over. Investors who put their money into a MSCI Europe ETF a year ago are now having to cope with a loss of 12.4%.