Investors miss out on equity returns

Bond funds were the strongest sellers globally in both May and year-to-date, according to data from Thomson Reuters Lipper.

But equity funds produced stronger returns – 11.6% in the year until the end of May, compared to bond funds, which made returns of 5.7% during the same period, the data showed.

Some $69.1 billion (€62 billion) of new money for May went into bond funds, which capped a 12-month run of strong flows into this fund category.

Bond funds have seen $363.2 billion in the five months up to the end of May.

At least German investors would have benefited from the higher equity returns as recent data from the BVI, Germany’s funds industry trade body, showed assets in German-domiciled equity funds and balanced funds reached an all-time high in April.

Investors confidence has also been edging up recently, which would normally spell greater appetite for equities.

Meanwhile, the Lipper data showed assets under management in the global collective investment funds market grew 1.9% in May to $42.68 trillion.

Compared to a year before, assets had jumped by $4.88 trillion.

©2017 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST