German investors ratchet up multi-asset holdings

Investors in Germany continue to increase their investments in multi-asset funds. According to the branch organisation for the German fund industry BVI, net inflows into multi-asset funds more than doubled in the first half of this year to a record €23.8bn. Total assets invested in mixed funds have now surpassed those in bond funds for the first time. However, German fund selectors are now diverting their attention away from multi-asset to long/short multi-strategy funds, so flows might be taking a different course.

‘Safe’ bond outflows accelerate

Investors have stepped up unwinding their long bond positions in June, according to the latest fund flows data provided by Morningstar. Net outflows from investment-grade bonds doubled from the previous month to €6.3bn. Net outflows of €1.5bn from high yield bond funds, the first net outflows since January, were another sign of the bearish mood which has gripped bond investors.

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