*European Flow Monitor: Flows into bonds continue to build; equity
demand recovers**
**Strongest bond flows of the year thus far*
Last week’s flows into fixed income funds were
the strongest seen so far this year, with robust
demand across the full range of DM debt
instruments, from sovereign to high yield bonds.
EM debt, in contrast, continued to see net
outflows.
Overall, we estimate that European investors
added €5.7 bn to fixed income funds during the
seven days ended March 27, 2014 (source: EPFR &
EFAMA).
*Flows into equities stage a modest recovery*
Investor appetite for equity assets also recovered
last week, following a brief spell of lacklustre
demand. Although inflows into DM equities
remained a little light, redemptions from EM
assets decelerated (investors withdrew 15 bp from
EM equities last week vs. an average weekly
redemption of 40 bp YTD).
Overall, we estimate that a net €0.8 bn flowed into
equity funds this week, while money market funds
saw net outflows of €10.6 bn.
*Italy flows like it’s 1999*
The Italian asset management industry saw net
inflows of €6.4 bn in February, which represents
an annualised rate of 13% - the strongest flows
seen by the industry in 13 years (source:
Assogestioni, Bank of Italy). Encouragingly, flows
into equity mutual funds also recorded an
improvement. We view these figures as
supportive of our long-term positive stance on the
Italian asset management industry (see The next
leg of Italian AUM growth, January 31, 2014).*
demand recovers**
**Strongest bond flows of the year thus far*
Last week’s flows into fixed income funds were
the strongest seen so far this year, with robust
demand across the full range of DM debt
instruments, from sovereign to high yield bonds.
EM debt, in contrast, continued to see net
outflows.
Overall, we estimate that European investors
added €5.7 bn to fixed income funds during the
seven days ended March 27, 2014 (source: EPFR &
EFAMA).
*Flows into equities stage a modest recovery*
Investor appetite for equity assets also recovered
last week, following a brief spell of lacklustre
demand. Although inflows into DM equities
remained a little light, redemptions from EM
assets decelerated (investors withdrew 15 bp from
EM equities last week vs. an average weekly
redemption of 40 bp YTD).
Overall, we estimate that a net €0.8 bn flowed into
equity funds this week, while money market funds
saw net outflows of €10.6 bn.
*Italy flows like it’s 1999*
The Italian asset management industry saw net
inflows of €6.4 bn in February, which represents
an annualised rate of 13% - the strongest flows
seen by the industry in 13 years (source:
Assogestioni, Bank of Italy). Encouragingly, flows
into equity mutual funds also recorded an
improvement. We view these figures as
supportive of our long-term positive stance on the
Italian asset management industry (see The next
leg of Italian AUM growth, January 31, 2014).*