Global investors shun fixed income funds in Q4, EFAMA data shows

Portfolio-Bonds-Fixed-Income-Performance-UK-700x450.jpgGlobal investors preferred equities to fixed income in the fourth quarter of 2016, data from the European Fund and Asset Management Association shows.

In Q4 equity funds saw net inflows of €114bn, up from €40bn in Q3, while bond funds saw net inflows of €107bn, down from €253bn in Q3, EFAMA announced in its latest international statistical release.

Net flows into mixed funds rose slightly to €64bn, compared to €59bn in Q3 2016.

Overall assets in funds worldwide increased 4.8 per cent to €41.29trn in Q4, although net cash inflows dropped from €432bn in Q3 to €388bn in Q4, due to the decline in bond fund sales.

At the end of 2016, assets in equity funds represented 40 percent of all investment fund assets globally while bond funds represented 22 percent, with the remainder in money market funds (12 per cent) and mixed funds (18 per cent).

Total net sales of funds for 2016 fell to €1.18trn, down from €1.97trn in 2015.

The US took the largest market share at 47.6 per cent, followed by Europe at 33.2 per cent and Australia at 3.7 per cent.