Posted inAnalysisFixed IncomeEurope

Absolute return inflows keep breaking records

Inflows into alternative Ucits funds broke an all-time record for the second consecutive month in March. According to Morningstar’s European fund flows data, investors poured in €8.7bn over the month. Total net inflows in the first three months of the year now total € 19.8bn. Multistrategy funds remain the most popular category, with €3.3bn in net inflows in March. Long/short debt funds registered an uptick in interest, with €1.5bn in net inflows over the month.

Long-only asset allocation funds are enjoying a similar popularity, setting new inflow records month after month. Inflows totalled €22.7bn in March alone, also an all-time record. In the first quarter of 2015, the category has now taken in €55.1bn in net new money.

Net fund flows in €

High yield inflows equity peers

These massive inflows into funds with an absolute return target dwarf those into other asset classes, such as European equity, with €5bn in net inflows in March, and high yield bonds. For the latter asset class, there is a strong preference for Europe, just like is the case with equities. Net flows into euro-denominated high yield totalled €2.1bn, while USD high yield saw net outflows of €741m. The same goes for US equities, but much more dramatically. March saw net outflows again reach an all-time record.

Part of the Mark Allen Group.