February 2015 was the month of the Great Rotation: it was not the long-awaited shift from bonds to equities though, but rather the move from US equities to European equities.
Absolute return strategies are now more popular among European fund selectors than ever before. But Europe’s biggest fans are to be found in Monaco.
A six-month outflow streak in European equities came to a halt in the first month of the new year, according to Morningstar’s freshest fund flows data.
Global ETF assets will double until 2020, according to a study by PwC. But where growth is expected to come from varies greatly between the US and Europe.
For European fund buyers, it’s either European or emerging market equities, never both. Equity market returns only partially explain the phenomenon.
The final equity category we discuss in our series is European equities. The asset class has shown strong performance, but volatility has increased sharply in recent months.
Expert Investor Europe’s latest fund manager sentiment survey suggests asset managers are following the wind, at least for European equities.
Since end October, asset management companies suddenly see much more perspective in US equities.
In October, fund selectors hastily reduced their allocations to European and emerging market equities and fled into ‘safe’ US equities.
Fund selectors and fund buyers strongly disagree where on the planet the investment climate is most benign