In October and November combined, investors poured a net €14.2bn into European equity funds according to fund flows data provided by Morningstar. This was the highest amount since February/March 2015, when inflows were a couple of billion euros higher. Ironically, the latter inflows followed straight after Mario Draghi announced the ECB’s first QE package.
So last autumn’s inflows may well be regarded as a precursor to the ECB’s expected announcement of a substantial new stimulus package to be announced in early December. As the ECB’s measures which were announced in early December fell well short of market expectations, it’s anybody’s guess what fund flows will look like in the final month of the year….
An ocean apart
Apart from the usual suspects of absolute return and multi-asset funds, high yield bond sales did remarkably well too. In the slipstream of European equities, European high yield bond funds registered some €2bn in net inflows, which were the highest since March.
In a sharp contrast, US high yield bonds funds suffered outflows, just like their equity counterparts which saw the largest net redemptions since April. In the first 11 months of 2015, US equity funds suffered total net outflows of €18.9bn while European equity funds welcomed €57.8 in net new money.Click here to see a full overview of the latest European fund flows data.