LSEG report: Most active funds are underperforming their benchmarks
Only 35% of active funds beat their benchmark over the past 12 months, and ESG portfolios were even worse off
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Only 35% of active funds beat their benchmark over the past 12 months, and ESG portfolios were even worse off
BlackRock, HSBC, JP Morgan among the best-selling European fund providers
European investors increased their risk appetite in 2017, recording high inflows into pure equity funds compared to outflows in the previous year, helped by a big rush into passive equity funds, according to a Thompson Reuters Lipper report.
Wealth managers traditionally allocate meagre chunks of their portfolios to passive, but with assets in exchange-traded funds passing the $4trn (£3.2trn, €3.6trn) mark globally last month, that could be set to change.
US inflation-linked bond ETFs saw record inflows in February, according to Lipper data. European investors are taking advantage of break-even inflation rates that are lower than they probably should be.
European investors hoarded cash in May. As Brexit-induced uncertainty dominated markets, they poured a net €14bn (£10.8bn, $15.8bn) into USD money market funds, according to Lipper fund flows data.
With Brexit now less than two weeks away, the volume of commentary finding its way into our sister publication Portfolio Adviser’s inbox is growing rapidly. For your convenience they have placed all the most interesting investment ideas into one place .
The European fund universe contracted during Q3 2015, with 646 funds liquidated or merged and only 453 new products launched, according to Lipper, a Thomson Reuters company.
While commentators are quick to praise innovation within the funds space, is there a case to say that the industry is still edging towards conservatism and risk aversion?
Outcome-based solutions – whether using building blocks or off-the-shelf – are the solution to the ‘ticking timebomb’ of longevity risk, a panel of fund groups leaders have agreed.
Just under half (48%) of all UK domiciled funds that were active on 30 September 2005 are now closed, according to Lipper, a Thomson Reuters company.
The 10 most popular funds in Europe drew net inflows last month of €31.2bn (£22.6bn) as Amundi is crowned lead group for net sales in August.