Active strategies overshadow passive for European investors
New Morningstar data shows that around 16% of European assets invested in funds were held in passive strategies in January 2018, much less than many had expected.
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New Morningstar data shows that around 16% of European assets invested in funds were held in passive strategies in January 2018, much less than many had expected.
US dollar denominated money market funds topped the charts in terms of inflows for January this year, while UK sterling funds saw the biggest outflows from this sector, according to the latest Thomson Reuters Lipper data.
European-domiciled emerging market (EM) funds have seen a spectacular turnaround in fortunes at the start of 2018 with inflows up €14.5bn during January to reach a total €11.4bn of assets under management after there were €3bn of outflows in December, according to Morningstar data on global categories.
In the year of the dog shares of companies based on the Chinese mainland are set to emerge as leaders of the pack for investors in China as the world’s second largest economy enters the MSCI Emerging Markets Index in May. But European investors have already begun to move.
Luxembourg’s popularity as an international fund management centre helped boost assets under management (AUM) in the tiny Duchy by 11.18% in 2017 to reach €4.16trn, according to the Association of the Luxembourg Fund Industry (ALFI).
While Danish fund selectors are renowned for being some of the most optimistic in Europe in responding to Expert Investor’s research, their latest sentiment on equities are systematically less positive compared with the European average.
European investors increased their risk appetite in 2017, recording high inflows into pure equity funds compared to outflows in the previous year, helped by a big rush into passive equity funds, according to a Thomson Reuters Lipper report.
European Fund Flows highlights the direction assets are flowing in and out of all active and passive European domiciled funds.
Japanese equities had the largest positive shift in net sentiment across pan-European fund selectors during the last quarter, according to Expert Investor research. Click through the slides below to find out more about the views of the industry toward Japanese equities.
European active equity funds saw a turnaround in net flows during 2017, enjoying a rise of €135.8bn in net new money to €62.7bn, after suffering an outflow of €73.1bn in 2016, according to Morningstar data.
Demand for European equities is the lowest from Nordic fund selectors as they turn their interest towards Asia and emerging markets, according to Expert Investor.
The net amount of money flowing into the European asset management industry is on course to hit a record level in 2017, thanks in part to strong demand for fixed income products, according to asset flows data compiled by Morningstar.