UK income has suffered alongside the outflows from the Woodford Equity Income Fund
…interest rates will remain “lower for longer” driving equity markets even higher…
2 January 2018
2017 has been a bleak year for many in the finance world but asset management has by contrast been in the pink with record breaking demand.
According to Thomson Reuters Lipper’s most recent European Fund Flows Report, assets under management in the European Mutual Funds Industry hit a best ever 10.2 trillion euros at the end of September. That’s up from the 9.4 trillion euros mark at the end of 2016.
The report stated that bond funds have been the best-selling individual asset type for the year to date with an increase of 232.9billion euros, whilst equity global was the best-selling sector, up 51.3billion euros.
The second best performing asset type was mixed-asset funds followed by equity funds, alternative funds, real estate and commodity funds.
These fund flows added up to overall net inflows of 554.4billion euros in long-term investment funds. ETFs contributed 67billion euros to these inflows.
By sectors Equity US suffered the highest net outflows.
BlackRock, with net sales of 84.9billion euros was the top fund promoter for the first nine months. In its most recent results it also flagged up equity, fixed income and multi-assets as the biggest inflow contributors.
Other providers such as GAM Holding recently reported net inflows up 9% to CHF 11.8billion in the three months to September 30 compared with the same period to June 30. It said fixed income strategies was the main driver highlighting its GAM Local Emerging Bond fund, which invests in debt of emerging countries denominated or pegged to the respective local currency.