Absolute return funds welcomed 43.5bn in net flows in 2014, by far the highest inflows of any asset class. By contrast, high yield bond funds, which were very popular in the previous three years, have fallen out of grace.
Most multi-asset funds need to offer an income yield around the 5% level to be competitive, says rating agency, Fundhouse, but this is increasingly tough to deliver.
The biggest equity asset classes all witnessed net outflows from European investors in November, while bond funds continue to attract more inflows.
Long/short debt funds witnessed their largest monthly outflows ever in October, against a backdrop of an increasing possibility the ECB will step up their intervention in European bond markets.
Multi-asset products will be the main driver of business growth for the next three years, asset managers believe.
Conservative Danish investors are caught in a trap – they are all bearish on traditional fixed income but they are also heavily committed to it.
Thomas Romig talks about the qualities he values in fund managers, and why he likens building an asset management portfolio to managing a football team.