Morningstar’s latest fund flow figures reveal that long-term European funds continue to see substantial demand from investors. Open-end funds posted net inflows of EUR 30.4 billion in May, and fixed-income funds welcomed EUR 14.13 billion, the highest inflows of any asset class. The resurgence of global emerging markets is demonstrated in the latest monthly figures, as investors sent EUR 2.87 billion into global emerging-markets bond funds last month. May also witnessed the third consecutive month of positive inflows for global emerging-markets equities.
Further findings for May Morningstar fund flows data include:
Morningstar’s Ali Masarwah, of Morningstar’s Asset Flows team, comments: “On the back of buoyant equity markets and increasing complacency of credit investors, open-end funds continued to attract investors in May. The resurgence of emerging-markets funds was also confirmed this month as investors sent nearly EUR 3 billion into global emerging-markets bond funds and, for the third month in a row, global emerging-markets equity funds enjoyed positive inflows. EUR cautious allocation funds and multi-strategy funds, which implement alternative investment techniques, were also much sought after this month. Investor demand for go-anywhere, flexible bond funds and long/short bond funds suggests they are readying themselves for rising yields in the United States and possibly in the UK.”