Europe’s asset allocations shift in May

ShiftInvestors have shifted towards safer assets in May, according to the latest fund flow data from Morningstar.

Long-term funds in its European database saw net outflows of nearly €9 billion during the month. Investors put €15 billion into money market funds and €855 million into allocation funds.

Meanwhile, Morningstar said, the “flight to safety” saw flows to the global emerging-markets equity category turn negative for the first time since November 2011.

Dan Lefkovitz, director of research operations, said market turmoil triggered real risk aversion in May, with European money flowing into money market funds and out of emerging markets stocks and bonds.

“Nevertheless, the flight to safety is not as pronounced as in August 2011, when European investors pulled 
€25 billion from the broad asset class, or September 2011, when €13 billion was redeemed,” Lefkovitz added. “May’s outflows have erased what had been mildly positive flows to equity funds during the first four months of the year.”

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