US investors show faith in ECB stimulus

Euro signUS investors allocated more money to Europe funds than other categories in September, data from Morningstar shows.

Mutual fund and exchange-traded fund (ETF) investors were anticipating future growth in light of the European Central Bank’s ongoing quantitative easing programme, Morningstar says.

International equity funds, particularly those with Europe exposure, took in $5.7 billion (€5 billion) in September.

Fixed income did not fare so well. Taxable-bond funds saw another month of outflows, though outflows for both active and passive funds were smaller than in previous months and there were signs that investors may be willing to accept lower yields in exchange for less risk. Short- and long-term treasuries were among those with the highest inflows for the second consecutive month.

The alternatives category was the only group with active-fund inflows for the second consecutive month, collecting $719 million.

Pimco’s Total Return Fund, still reeling from the departure of ‘bond king’ Bill Gross last year, continues to be the fund with the largest outflows.

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