Bond sector remains most popular, says Morningstar

EU euro notes 450

Fixed income funds saw inflows of €22.1bn during October, contributing to total long-term inflows of €25.7bn.

Equity funds saw a second consecutive month of net inflows, with €1.8bn reported during October, down from €3.1bn in September.

Global emerging market equities funds were the main source of inflows into the equity sector during October, generating net sales of €1.9bn.

Estimated net flows in October (€m)
Pimco: 3,915
Credit Suisse: 1,966
AllianceBernstein: 1,819
BlackRock: 1,549
JP Morgan: 1,407
Axa: 1,174
Aberdeen: 929
Franklin Templeton: 728
Invesco: 718
HSBC: 698

Amundi: -654
Santander: -1,061
BNP Paribas: -2,349
Source: Morningstar

Ali Masarwah, a member of Morningstar’s European research team, says: “Investors’ motivation for the continuing craze for bond funds is open to interpretation.

“Superficially, European investors appear risk-happy and even indifferent toward tightening credit spreads, yet cautious when it comes to equities. Desperation, however, might also be an important driver.”

Pimco saw the strongest inflows during October with net sales of €3.9bn, followed by Credit Suisse with just under €2bn and AllianceBernstein with €1.6bn. Amundi, Santander and BNP Paribas all saw outflows during October.