European investors buy bonds despite new quantitative easing

Bond funds were the best-selling asset type for October in Europe, despite new quantitative easing measures implemented by the European Central Bank.

Bonds saw inflows of €23 billion, while overall fund flows for mutual funds in Europe throughout October were a positive €28.2 billion, according to the latest data from Refinitv.

October was the eighth month during which long-term mutual funds posted net inflows this year.

Detlef Glow, Lipper head of Europe, Middle East and Africa research at Refinitiv, said: “European investors bought further into bond funds in October despite the new quantitative easing by the European Central Bank and interest rate cut by the Federal Reserve.”

“The general inflows into mutual funds come despite ongoing concerns about declining company earnings and the possible effects of the trade war between the U.S. and China.”

Multi-asset funds enjoyed inflows of €9.8 billion, whilst equities saw €3.3 billion of new investment.

Alternative Ucits funds suffered outflows of €3.4 billion. Whilst real estate funds also saw redemptions to the tune of €0.3 billion.

The best-selling sector among long-term funds was euro-dominated absolute return bond with €5.6 billion of new cash.

France was the domicile with the highest net inflows (€10.7 billion), followed by Luxembourg (€10.2 billion), and Ireland (€6.6 billion).

©2019 funds europe

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