While it’s no secret that passive, low-cost products are relentlessly increasing their market share, investors’ hunt for yield has also buoyed sentiment towards flexible and unconstrained mandates, according to Morningstar.
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.
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.
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.
Emerging market debt was the best-selling asset class with European investors for the fourth consecutive month in April, according to Morningstar fund flows.
Low-volatility funds have been in great demand over the past few years, with investors continuing to pour in money while pulling out of other equity funds, according to a Morningstar study. Considering the long-term performance of low-vol strategies, that is hardly a surprise.
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.
Some sustainable index trackers have outperformed their plain vanilla peers since they were established a few years ago, while others haven’t.
It’s time to take a few chips off the table and up the quality of your bond portfolio as the reflation trade has run its course, believes Ariel Bezalel, manager of the €9bn Jupiter Dynamic Bond Fund. But should you really sell in May?
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.
