Fixed income funds are still finding favour with European investors despite the inverted yield curves experienced by several major global economies.
The latest fund flow data from research firm Lipper showed that bond funds were the most popular product with European investors in January 2024 with inflows of €29.3 billion.
This was slightly more than the inflows for money market products at €28.2 billion.
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EU fixed income funds see net inflows in January
Overall, January was a positive month for the promoters of mutual funds and ETFs with net inflows of €22.5 billion and €21 billion respectively.
In terms of individual asset managers, BlackRock was the best selling fund promoter in January with inflows of €7.3 billion.
According to Detlef Glow, head of Lipper EMEA research, it is “not surprising that European investors have brought further into money market products since the Eurozone and other major economies have an inverted yield curve”.
However, Glow also expressed surprise that bond funds still remain the most favoured fund type given the economic conditions facing major global economies.
