Morningstar latest asset flow data suggests that European fund investors have turned their back on equities after becoming disheartened by the region’s dull growth prospects.
In April, equity funds sold across Europe were hit by their first net outflows since August 2012 with an estimated EUR344 million being pulled from the asset class. This is in contrast to the net inflows of EUR26.5 billion seen in bond funds.
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However, alternative funds experienced ‘solid’ demand over the month after taking EUR3 billion. But this went into a fairly concentrated group of funds with the Standard Life Global Absolute Return Strategies fund alone capturing a third.
Overall, long-term open-ended funds excluding funds of funds and master-feeder funds saw EUR40.3 billion in net inflows during April, taking the year-to-date total to EUR154.2 billion.
In terms of individual funds, Michael Hasenstab’s Templeton Global Total Return was the most popular with net inflows of just over EUR2 billion.
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