European bond funds received increased investor demand in April, recording net inflows of €16 billion, according to the European Fund and Asset Management Association (Efama).
The latest monthly factsheet revealed net inflows into bond funds had increased by €10 billion April, from €6 billion the month prior.
According to the report, the increased demand for bond funds signals renewed investor confidence.
Bernard Delbecque, senior director for economics and research at Efama, said: “Net inflows into bond funds increased in April, suggesting investor confidence that inflation will continue to fall.”
Alternative investment funds (Aifs) were also attractive to investors in April as the strategies reported net inflows of €15 billion throughout the month. This was a significant increase from €2 billion in March.
In comparison, inflows into the European Ucits market fell during the month. Net inflows into long-term Ucits decreased from €8 billion in March to €6 billion in April.
Equity funds saw net inflows of €3 billion in April, which was down from €4 billion the month prior. Multi asset funds also recorded net inflows of €6 billion in April, whereas the asset class saw net inflows of €11 billion in March.
In addition, net sales of Ucits dropped from €29 billion in April to €19 billion in April.
Greater demand for fixed income products has already had an impact on recent product development moves by European asset managers. UBP has capitalised off the high demand for bond funds with the launch of high-income fund, targeting high-income bonds and subordinated corporate and financial debt.
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