European long-term funds reach record €4.44 trillion, Morningstar

European investors poured a net €35.09 bn into long-term open-end mutual funds in February, down from January’s record inflows of €47.1bn, according to the latest European asset flows data published by Morningstar.

At the end of February, €4.44 trillion was invested in European long-term funds, the highest level recorded since Morningstar started providing industry-level flow data in 2007.

Inflows into bond funds remained strong, reaching €11.46bn, compared with €9.24bn for equity funds.

Among equity funds, allocation funds accrued the most investor assets, gathering €9.91bn in February.

Global emerging-markets bond funds remained popular, as were global emerging-markets equity funds, which again saw the highest monthly inflows into any equity category.

Despite the fact that global emerging-markets equity funds topped all equity categories in February, their inflows of €1.46bn were notably less than in any one-month period since August 2012.

Corporate bond funds continued to suffer outflows in February. EUR-, USD- and GBP-focused corporate bond funds posted redemptions in February, as did GBP diversified bond funds.

New Italian mixed asset fund Gestielle Cedola Piu, which took in €1.28bn during its initial subscription period, and Templeton Global Return, with inflows of €1.28bn, were among the funds with the largest inflows for the month.

At the firm level, BlackRock lead in February, benefiting twofold from investors´ surge into a broader asset mix with allocation and equity funds gathering handsome inflows year-to-date.

“Investors seem to have embraced risky assets amidst current market conditions. Equity markets remain buoyant and bond markets complacent, and investors have seemingly viewed bad news like the Italian election stalemate as a temporary setback on the one hand, or a buying opportunity on the other,” said Ali Masarwah from Morningstar’s European research team.

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