Fears that the European Central Bank could wind down its quantitative easing programme earlier than expected has bought an end to the longest run of inflows into European equities since the last quarter of 2015.
According to flow data from EPFR Global, fund groups dedicated to two markets outside the eurozone – UK and Switzerland equity funds – accounted for the largest share of the headline number for all European equity funds.
Both UK and Switzerland equity funds experienced outflows in excess of $400 million (€350.7 million.)
Financial sector funds saw their biggest inflow since mid-February following bank rescues in Italy and the results of the latest US Federal Reserve stress tests of major US banks.
NN Investment Partners forecasts that value stocks, especially financials, will be the major beneficiaries from a likely global bond sell-off and the current positive macro-economic environment.
Global-tracked bond funds posted collective inflows of $3.9 billion while global equity funds took in $2.9 billion.
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