Emerging markets was the only sector within equity funds to attract investors' attention in August, as they continued to move assets into fixed income in the aftermath of the Brexit vote, according to Morningstar.
Fixed income funds attracted some €23.6bn of inflows in August, as investors fled equities following the EU referendum result and amid expectations of lower interest rates for longer and further extraordinary policy measures from central banks. Meanwhile, equity funds suffered outflows of €4.1bn, with only emerging market products bucking the trend with €3bn of inflows. Over the year to the end of August, EM equity funds have seen inflows of €9.6bn, marking a reversal of fortunes from the previous year. Overall year-to-date, investors have redeemed some €71.7bn from open-ended equity ...
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