Total inflows into Europe-domiciled fixed income funds reached a record €152.2 billion in the first half of the year, according to data published today.
The figures, contained in Morningstar’s fund flows report for June, also showed that Europe-domiciled bond funds attracted net inflows of €29 billion last month – the second-highest monthly tally since Morningstar started to publish European asset flow figures in 2007.
The surge of money into bond funds came in spite of fears that the fixed-income market could decline as central banks shift towards normalising monetary policy.
Funds in the US dollar-hedged global flexible-bond category were the main beneficiaries of the rush to bond funds, specifically the Pimco GIS Income Fund.
The fund amassed net inflows of €4.1 billion during June and is now Europe’s largest open-ended fund, Morningstar said.
In total for the month of June, Pimco saw inflows of €5.8 billion into its Europe-domiciled open-ended funds, taking its year-to-date total flows to €27 billion.
Matias Möttölä, director of manager research at Morningstar, said that there had been no challengers to Pimco’s dominance in June.
“The US-based company’s inflows for the month have taken its year-to-date total flows to €27 billion, a figure which corresponds to 29% of the firm’s total assets at the end of last year – and which brings Pimco’s total assets in Europe-domiciled funds beyond their peak levels of 2013.”
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