Europe AM industry pushes inflows 95% up
Even allowing for some outflows in equities late in the summer, a total of €367bn in European estimated net sales for 2014 represented an increase of 95% from 2013 and fell just shy of the best ever total of €372bn taken in 2006, Lipper’s 2014 review has revealed.
Cross-border fund flows were strong, with some €179bn net being collected for the year (not including the net flows of money market funds).
Looking at specific countries, Italy—with a total of €47bn for the year—dominated the European flows. Spain, which came in second for most of the year, was finally pipped to the post by Germany in a very close result (+€20.3bn and +€20.9bn, respectively), and the United Kingdom came in sixth with €13bn of net flows; an anaemic last quarter pushed the UK down in the rankings.
Despite the constant threat of increasing interest rates, bond funds had their seventh consecutive year of growth, with a total of €164bn of estimated net sales for 2014; they were dominant over equities, which could only muster €60bn by comparison, the report also highlighted.
The success of mixed-asset funds was a continuing theme throughout Europe, with €125bn net being collected during the year. However, the number of new mixed-asset fund launches was down for the first time since 2010, suggesting the trend may now possibly have hit its peak. Commodity funds remained a loser in a difficult macro environment, with some €2.2bn of net outflows during the year.
On a sector basis there was still a strong income & yield theme, which was reflected in net flows. Broad-based European corporate bond funds proved very popular, collecting some €58bn across various iterations. This was also interspersed with preferences for larger-cap “safe-haven” equities in the US and Europe.
The mixed-asset trend, which includes flows into fund-of-funds portfolios of varying risk, also reflected Europe’s preference for broad-based diversification in an increasingly fraught geopolitical environment. Higher-risk equities and emerging market regions (other than EM bonds) were barely represented in the 25 top sectors.
The top groups by sales contained a number of regulars. BlackRock, with €29bn of estimated net sales for 2014, easily headed up the table. There were a number of groups around the €16bn ENS mark for 2014, but JPM—with the lowest number of funds of this total (just over 200 funds) had the best concentration average.
Click here for full report.
Fund Selector Absolute Return Focus Frankfurt
InvestmentEurope is delighted to announce the Fund Selector Absolute Return Focus Frankfurt to be held on 21 April in Frankfurt at the Hilton Frankfurt.
Click here for further details: http://www.investmenteurope.net/event/spring-pan-european-fund-selector-summit-2015/