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 articles

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.

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...

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.

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

CEO INTERVIEW: Munro gains three-year track record

Mar 16, 2017

Aviva Investors’ annual results this month were the third set since Euan Munro took over as CEO. Nick Fitzpatrick speaks to him about the ‘Aims’ fund at the heart of the firm’s outcome strategy.

DISTRIBUTION INTERVIEW: Tales of the unexpected

Mar 16, 2017

Laurence Terryn, a fund selector at Candriam, tells David Stevenson how the twists and turns of the past year’s macro environment flavoured her approach to fund selection.

Roundtables

ASSET SERVICING ROUNDTABLE: Under pressure

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.

SEC LENDING ROUNDTABLE: Both a borrower and a lender be

Jan 11, 2017

Industry heavyweights, including agent lenders, discuss issues affecting the securities lending sector such as regulation and the types of collateral being used.