bond funds top european inflows

Flows into bond funds reached 20bn across Europe in November, the second-best month since Morningstar first began collating the data in 2007.

bond funds top european inflows

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Excluding December, investors poured €158bn into fixed interest vehicles last year. Morningstar identified a huge appetite for yield, with investors piling into global emerging market bond funds and high yield.

The total inflows into global emerging market bond funds – including local and hard currency vehicles – was in excess of €20bn for the year, eclipsing the €11.3bn achieved by corporate bond funds.

Bond specialist Pimco recorded inflows of €29bn during the year, more than twice the amount achieved by second-placed AllianceBernstein.

Only two of the 10 fund providers with the greatest yearly inflows deviated from the bond trend: Aberdeen was the main beneficiary of the high inflows into emerging-markets equity funds, while M&G benefited from a preference for allocation funds.

However, it has also been noted that net inflows of €4.7bn made November the strongest month for equity funds in Europe since April 2011. Global emerging market equities, Asia-Pacific ex-Japan and global large-cap blend funds led the way.

“Although interest in equity funds picked up in November, equity funds have had a bleak year, marked by outflows of €11bn and little potential for a strong enough December to pull them out of the red,” said Ali Masarwah from Morningstar’s European research team.

“However, year-to-date outflows are nowhere near the levels seen during the sell-offs of 2011 and 2008 when equity funds saw outflows of €41.8bn and €84.9bn, respectively.”

 

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