Outflows from emerging market equity funds slowed down considerably in September, according to Morningstar fund flows data. Moreover, the International Institute of Finance (IIF) estimates net flows will be positive in October. These would be the first net inflows into emerging markets since November last year.
For the first time in two years, European equities again are the most popular asset class with European investors. They took over the number one spot on the inflows list from multi-asset funds in September.
A poll at Expert Investor Europe’s Alternative Ucits Congress in Versailles earlier this month showed that little over half of delegates negotiate the fees they pay for their alternative investment funds. Dan Kemp of Morningstar finds this figure ‘surprisingly low’, and suggests that fund selectors should attach more importance to costs.
The pace of inflows into index-trackers shows no sign of abating. With still three months to go this year, ETFs listed in Europe have already surpassed the previous inflows record set in 2014.
August saw the greatest monthly outflows from emerging markets of all times. Asia, the origin of last month’s global market correction, was particularly hard hit.
The Great Rotation from emerging markets to developed market equities is now in full swing: while investors pulled out a record €7.1bn from global emerging market equities in July, net inflows into their developed market equivalents were at their highest since February 2014.
You might have had a gut feeling that it’s mainly banks and wealth management companies and their clients buying liquid alternatives. The facts show that’s indeed the case, but it hasn’t always been this way.
Investors have stepped up unwinding their long bond positions in June, according to the latest fund flows data provided by Morningstar. Net outflows from investment-grade bonds doubled from the previous month to €6.3bn. Net outflows of €1.5bn from high yield bond funds, the first net outflows since January, were another sign of the bearish mood…
The launch of the ECB’s bond-buying programme has led to a convergence in net inflows into investment grade bonds and European equities, an analysis of recent Morningstar fund flows data shows.
European investors have responded to the recent slump in European bond prices by swapping their long-only fund holdings for absolute return funds, Morningstar’s latest fund flows report reveals.
High yield bonds are known for their correlation with equity markets, but it seems the asset class especially has things in common with one specific type of equities.
Emerging market debt and high yield bonds, which have had some pretty high inflow volatility recently, are now firmly back in favour with European investors. By contrast, net inflows into investment grade bonds are slowing down.
