Global Bond ETF inflows surge by 40% in Q2
The global bond ETF industry garnered almost twice the amount of capital from investors in the second quarter of 2017 as it did the year prior, thanks to sustained demand for EM debt passive products.
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The global bond ETF industry garnered almost twice the amount of capital from investors in the second quarter of 2017 as it did the year prior, thanks to sustained demand for EM debt passive products.
One-stop shop funds that take away responsibility for asset allocation have continued to be the blockbuster sellers with European investors. But which other asset classes have actually seen the strongest inflows over the past three years? The answer may surprise you.
Frontier market equities saw the largest net inflows for a very long time in June, suggesting the interest in developing economies’ stock markets is broadening.
Bond funds domiciled in Europe saw net inflows of €29bn in June, the second-highest monthly tally ever, according to Morningstar data. Total inflows for bond funds rose to €52.2bn in the first six months of the year, a new high for semi-annual net inflows into the asset class.
Unconstrained bond funds have seen almost unconstrained inflows this year, according to Morningstar data. While more than 40% investors in Europe don’t use such funds, those who do invest in them tend to like them a lot.
Investors have continued to funnel astronomic amounts into passive funds across the globe this year, with Vanguard leading the way. Meanwhile, Goldman Sachs AM (GSAM) has been suffering its worst streak of outflows on record.
The French asset manager Amundi has attracted most net inflows from European investors year-to-date, narrowly beating Blackrock into second place. A resurgent Pimco saw the biggest amount of flows into active funds, according to Morningstar data.
Following the French elections, investors have swapped actively managed single country equity funds for index trackers.
European equities have been in the spotlights for a while, and finally interest is translating into real flows, according to Morningstar data. But there is a caveat to the optimism, which manifested itself last week.
Net flows into multi-asset funds have reached a two-year high, according to Morningstar fund flows data. Multi-asset is especially popular in two large European countries, known for their conservative investor base.
Has the run into emerging market bonds only just started, or have flows already reached saturation point? And what does that mean for the outlook for the asset class?
Record inflows in May powered total assets invested in ETFs across the $4trn mark. And Europe is picking up the pace.