European investors 'risk on' as global equity funds remain best sellers in January
Refinitiv monthly European fund flow report
Global equity funds remained the best-selling investment vehicles during January 2020, according to the latest European fund flows report from the Lipper team at Refinitiv, with BlackRock taking the top spot as the best-selling fund promoter for the month with inflows of €16.6bn.
Overall, European-domiciled funds saw net inflows of €106.5bn in January, with almost 10% of this (€9.8bn) coming from Lipper's Equity Global sector.
The Bond Global USD and Equity Emerging Markets Global sectors came in second and third place, with respective inflows of €5bn and €2.7bn.
At the opposite end of the spectrum, Equity Eurozone suffered the highest net outflows at €2.8bn, followed by Equity Asia Pacific ex Japan at €2.3bn and Equity US at €2.1bn.
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Detlef Glow, Lipper head of EMEA research at Refinitiv, said: "Following the good performance of equity markets globally, European investors continued to be in risk-on mode in January. Investor sentiment might have been supported by positive news regarding the trade war between the US and China, as well as a clearer situation around Brexit, since both led to a better outlook for general economic growth and company earnings for the year ahead.
"Despite this, there are concerns over global economic growth, which have been triggered by the outbreak of the coronavirus, the effects of which on supply chains and corporate profits are not yet known. Nevertheless, long-term mutual funds posted strong net inflows in January 2020."
Fund providers
In terms of fund providers, BlackRock saw the greatest net sales with inflows of €16.6bn. Amundi and BNP Paribas Asset Management came in second and third place, with respective inflows of €14bn and €8.4bn. Meanwhile, J.P. Morgan achieved the fourth-highest inflows at €7.3bn, while Natixis was hot on its heels at €6.5bn.
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When broken down into individual asset classes, BlackRock also saw the biggest inflows into equity and bond funds, although AXA took the top spot for inflows into multi-asset funds at €1.3bn. DWS Group was the leading provider of alternative UCITS funds in January at €400m.
UBS and Pictet also saw some of the biggest inflows for equities at €2.8bn and €1.6bn respectively, while PIMCO and J.P. Morgan came in second and third place for their bond fund inflows for January at €3bn and €2.8bn
AXA Strategy Fund Professional Invest S was the best-selling individual fund for January having gathered €1.5bn in assets. Silver and bronze spots were taken by global equity fund ACS World Low Carbon EQ Tracker X2 with inflows of €0.8bn, and corporate bond fund MS INVF Euro Corporate Bond N with €700m worth of inflows.
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