Market upheaval leads investors to US equities
In October, fund selectors hastily reduced their allocations to European and emerging market equities and fled into ‘safe’ US equities.
In October, fund selectors hastily reduced their allocations to European and emerging market equities and fled into ‘safe’ US equities.
The market volatility of recent months has led to a radical shift in fortunes for the participants in EIE’s Fantasy Fund Picker Competition.
European investors pulled 5.3bn out of high yield funds in September, while they propped up their holdings in investment grade corporate bonds and long/short debt.
European ETF assets have more than doubled over the last five years, according to a study by Morningstar.
Net outflows from European equity funds broke a new record in September, according to Morningstar’s latest fund flows.
Net outflows from European equity funds accelerated in August, while developed bonds are showing an upsurge.
Mutual funds which invest in European equities suffered net outflows in July for the first time since March 2013.
European investors have suddenly started to pour in money into corporate bonds in June, while net inflows into high yield bond funds collapsed.
Money flows to developed equity funds are now at the lowest level since June 2013, according to the latest EIE fund flows data.
Flows into European equity funds are the lowest they have been for almost a year.
There are signs of a massive turnaround in emerging market fund flows, Morningstar’s freshest data suggest.
Despite the EU rejecting a proposal to limit the variable pay of fund managers, the question of remuneration remains under the spotlight. By Will Jackson