Pimco bond fund dominates March inflows with €3.9bn

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The Pimco GIS Income fund has dominated March inflows attracting €3.9bn, according to Morningstar.

The inflows represent a significant slice of overall inflows for the Morningstar Global Flexible Bond – USD Hedged category, which brought in €4.6bn over the month – the largest inflows for any category.

Over one year the fund has brought in €15.3bn for Pimco, 80 per cent of its total net inflows over the period.

In total bond funds saw €25.6bn of inflows. Active equity funds saw €3.3bn of outflows, mirrored by €3.3bn of inflows into index equity funds over the month.

In contrast, Pioneer Investments suffered the worst outflows of any asset manager over the month, losing €1.5bn, two thirds of which were from bond funds.

The outflows follow the departure of Tanguy Le Saout and Ali Chabaane, who were suspended from the firm in December as they sought to establish a competing asset manager ahead of the firm’s sale to Amundi.

Ali Masarwah, EMEA editorial director for Morningstar, says: “The March fund flows illustrate investors’ preference for higher-yielding fixed-income assets in times of ultralow interest rates.

Masarwah adds: “March also brought a setback for actively managed equity funds in Europe. After enjoying inflows in the first two months of the year, flows to active funds were back in the red in March, dashing industry hopes of a substantial turn-around in the first quarter.

“On a broad category level, open-end equity funds were virtually flat in March as inflows into open-end index funds equalized outflows from actively managed funds. Overall, equity index funds continued to thrive as equity ETFs, which are not part of our open-end data, enjoyed additional inflows of EUR 6.2 billion.”