The €1bn of net outflows from emerging market equity funds in December brought 2015’s total redemptions from the asset class to €36.3bn. Though emerging markets elsewhere were affected most heavily by the commodity price slump, Asia was suffering the biggest blows in 2015.
Investor enthusiasm for multi-asset funds is on the decline. Though asset flows are still positive, they are now at their lowest level since August 2012. Are the heydays of multi-asset funds over?
Net flows into hedge funds by European investors decerased only marginally in 2015, according to Evestment data. The US saw strong outflows, contrasting with exponential growth in Asia.
Index-tracking products continued to rise in popularity in 2015. According to data collated by research consultancy ETFGI, ETFs listed in Europe gathered a record amount of new assets in 2015.
US equity funds have a hard time in beating their peers on a sustained basis. Only 4.28% of 678 US equity funds analysed by S&P managed to consistently finish in the top-quartile during three consecutive one-year periods from September 2012 to September 2015. So no wonder investors prefer the passive option…
European equity funds are once again in high demand. In November, European equities were the most popular asset class for two consecutive months for the first time since February.
US funds giant BlackRock said its iShares business had seen $130bn of new inflows during 2015 as strong retail and institutional demand drove the global exchange traded funds (ETFs) to post a record annual increase of $347bn.
Debt-to-GDP ratios in emerging market countries have been rising at alarming rates this year, according to the latest data from the Institute of International Finance (IIF). China, Saudi-Arabia and Turkey have seen the most rapid debt build-up.
The high yield bond sell-off has proved short-lived. After two months of strong net outflows, fortunes for the asset class have reversed once again. For other fixed income asset classes, fund flows remained negative.
Emerging market equities have returned to favour with European investors, for as long as it lasts. After 10 straight months of net outflows, money is finally flowing into the asset class again, according to the latest Morningstar fund flows data.
In anticipation of a Fed rate hike, institutional investors have withdrawn $1bn from their emerging market debt holdings in the past two weeks, according to data collated by the International Institute of Finance.
Multi-strategy funds have a far higher correlation to global equities than long/short equity funds, and especially market-neutral funds, according to research conducted by Natixis Global Asset Management.
