Equity funds on course for largest outflows in five years

Graph downEquity funds are “firmly” on track for their biggest collective outflow since 2011, latest data suggests. EPFR Global said global flows to bond funds pushed the figure for the category’s assets under management to upwards of $60 billion (€53.03 billion) in the five days ending May 11, appearing to reverse the ‘Great Rotation’ thesis of recent times, which described the rotation out of bonds and into equities. During the week, investors pulled $7.4 billion out of equity funds while committing $3.5 billion to bond funds and nearly $11 billion to money market funds. A recent rebound in dividend equity fund flows came to an “abrupt halt”, with this fund group recording its biggest outflow since late January, said EPFR. Driving this latest shift are doubts about the effectiveness of the policies pursued by Japan and the Eurozone to kick-start economic growth, the erosion of corporate profit margins in the US and China 
and the structural issues dogging many of the major emerging markets, EPFR said. Doubts, meanwhile, that the US rate hiking cycle will be anywhere near as deep or as long as previously expected has removed a major cloud hanging over many fixed income asset classes coming into 2016. ©2016 funds europe

Sponsored Profiles

SPONSORED FEATURE: Alternative thinking

Mar 16, 2017

Portfolio Manager Davide Cataldo discusses the results of the Pioneer Investments’ survey on liquid alternatives and how investors can be encouraged to increase their allocation.

SPONSORED FEATURE: Interest rate risk hedging: Swapping to other options

Mar 16, 2017

Heightened margin requirements for cleared and uncleared OTC derivatives pose a challenge for legitimate hedging activities and are driving financial institutions to explore alternative hedging...

SPONSORED FEATURE: Why blockchain could be the fund industry’s next Ford Model T

Mar 16, 2017

Blockchain aims to radically change the way investors can access funds, says Olivier Portenseigne, Managing Director and Chief Commercial Officer of Fundsquare.

SPONSORED FEATURE: Open architecture: In need of protection

Mar 16, 2017

Greater efficiency must be embraced to ensure regulatory changes do not destroy choice for fund buyers, says Bernard Tancré of Clearstream.

Executive Interviews

INTERVIEW: Finding managers that can (and do)

Apr 18, 2017

Fabrice Kremer, a fund selector at Banque de Luxembourg Investments, has berated fundamental managers for failing to beat indices, but he remains committed to active funds. He speaks to Nick...

JERSEY INTERVIEW: ‘A steady sort of place’

Mar 21, 2017

The chief executive of Jersey Finance is keen to portray the island as a stable, trustworthy jurisdiction. He talks to George Mitton.


ROUNDTABLE: The issue is perception

Mar 21, 2017

Our panel discuss tax transparency, the elegance of private placement and why Jersey could do more to promote itself. Chaired by Tom Cowsill in Saint Helier.


Mar 07, 2017

Funds Europe speaks to leading Luxembourg industry figures about the growing regulatory demands on asset servicers and how to remain profitable in spite of major investments in technology.