Investors switch to trackers in European equity markets
Following the French elections, investors have swapped actively managed single country equity funds for index trackers.
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.
Emerging market debt was the best-selling asset class with European investors for the fourth consecutive month in April, according to Morningstar fund flows.
European investors did in April what could, or perhaps even should, be expected from them: they sold US equities and bought the assets they said they would.
US equity ETFs saw net outflows of €1.3bn in April, in a sharp reversal from the previous month when it was the best-selling asset class overall, Lipper reported. European equity ETFs, by contrast, enjoyed huge inflows on the back of macro(n)economic optimism.
Three years after launch, the New Capital Swiss Select Equity Fund is five-star Morningstar rated and has produced an annualised return of 14.19% since inception. How does the Fund’s hidden gem, Airopack, contribute to its performance?
US and UK corporate bonds were in great demand among European investors in March while high-yield bond funds saw outflows, according to Morningstar fund flows data.
Emerging market assets saw net inflows for the third month running in March, as investor optimism about prospects for EM assets continued to grow.
European-domiciled ETFs saw $11.1bn in net inflows in March, according to Blackrock. That’s an all-time record for the month. ETF investors in other parts of the world also joined the party in great numbers.