- Assets under management in the global fund market have stalled at around $36 trillion over the past few months....
- All asset classes except Money Market Funds delivered positive net flows in the quarter. However estimated net flows for Bond Funds headed into negative territory in June, due to rising yield volatility.
- Whilst all asset types delivered positive average returns in the quarter, all except Money Market Funds and Alternatives turned negative in June, led by Equity Funds with an average negative return of 2.2 %.
- Nevertheless, investors still seemed keen to hold on to Equity Funds, with these attracting the most net new money in June. It looks like central banks remained committed to their Zero Interest Rate Policy and investors anticipated an ample liquidity supply in equity markets, regardless of geopolitical and monetary uncertainties.
- Equity Global ex US, Japan and Europe lead Equity Funds’ net inflows for the quarter, whilst Equity US Income and Equity US funds top the Equity Funds’ outflows league. It appears that different stimulators are driving equity investments on either side of the Atlantic On one hand Europe relies on ongoing liquidity injections , whilst, on the other, US investors seem to take a more cautious approach.
- The global report encompasses all collective investment vehicles domiciled worldwide in the Lipper database, except pension funds.