Asset allocators and “alternatives” lead Europe fund flows

graph up downAsset allocation funds sold in Europe saw increased flows in May, while sales of equity and bond funds reduced and money market funds suffered considerable outflows, according to Morningstar. Money market funds saw €13.55 billion flow out, making May the first negative month of 2015 for these short-term cash vehicles. Withdrawals were seen from global, European and UK-focused money market funds. In contrast, asset allocation and “alternative” funds – such as absolute return vehicles – drew inflows of €15.87 billion and €7.09 billion for the month, with particular demand for asset allocation funds in Italy, Spain and Germany. Amongst alternatives, multi-strategy funds saw €3.02 billion in inflows, consistent with a strong performance across the year so far. Examples include the Standard Life Investments Global Absolute Return Strategies and the Invesco Perpetual Global Targeted Returns, which attracted considerable net new money. Both asset allocation and alternative funds have seen good growth through 2015, attracting investors as they move away from European bond funds, which saw volatility spikes in April. Investor interest in both bond and equity funds has waned as fears of a ‘Grexit’ continue to build and bond yields fluctuate. Bond funds saw significantly reduced net inflows of €5.54 billion in May and euro diversified bond funds in particular suffered the worst month on record, with outflows of €2.64 billion. Actively managed equity funds saw the greatest outflows and open-ended equity index funds also lost €160 million. The outlook for equity exchange-traded funds was more positive, with inflows of €540 million. Overall, May brought the lowest inflows for long-term funds so far this year, at only €28.51 billion, compared to the long-time high of €52.21 billion in February. ©2015 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.