Europe Has Record Month for Fund Inflows

January 2018 was the strongest month on record flow-wise for Europe’s fund industry and for assets under management

Valerio Baselli 28 February, 2018 | 3:57PM Ali Masarwah
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January 2018 was the strongest month on record flow-wise for Europe’s fund industry, with inflows surpassing €120 billion with the help of open-ended equity funds and exchange traded funds (ETFs).

Since equity markets continued their winning streak until the close of January, it does not come as a surprise that assets managed by Europe’s fund industry also marked an all-time high with assets in long-term funds reaching €8.57 trillion. It remains to be seen, however, how market participants will react to the sudden market correction in February, which left many equity markets 10% lower than the levels seen at the end of January.

January again witnessed a huge demand for emerging-markets equity and bond funds. This is illustrated by the fact that they make up three of the five top-selling fund categories. This positive sentiment towards emerging markets very much reflects the prevailing risk-on mode in January. The emerging markets equity funds offered by JP Morgan and Schroder witnessed the strongest demand, enjoying net inflows of €829 million and €584 million, respectively. It is worthwhile noting that emerging-markets index funds also enjoyed considerable inflows.  

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
ASSII-Gb AbRt Str D Acc EUR12.87 EUR-0.20Rating
Fidelity MoneyBuilder Income37.31 GBP-0.03Rating
LF Equity Income C Sterling Acc3.44 GBP0.00
M&G Optimal Income GBP I Acc248.40 GBP0.06Rating

About Author

Valerio Baselli

Valerio Baselli  is an Editor at Morningstar Italy.