The number of low-volatility funds available in Europe has doubled over the past five years to almost 100 open-ended or ETFs, according to a report published today.
The report from research firm Morningstar found that net inflows over the past five years amounted to an estimated €27 billion while assets under management reached €40 billion.
The data also showed that by the end of 2016 there were 89 low-volatility funds in Europe, split between 63 open-ended funds and 26 ETFs, with 15% of assets in ETFs.
Morningstar analyst Mathieu Caquineau said: “Most low-volatility strategies have produced compelling results from a risk-adjusted standpoint in recent history.
“Actively managed low-volatility strategies are going beyond traditional minimum variance by using approaches that recognise the different sources of risk they are exposed to.”
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