Fixed income and money market funds lead May inflows
Latest Money Monitor from Lyxor ETF
Fixed income and money market funds saw the lion's share of inflows in May, with open-ended funds and ETFs across the asset classes seeing combined flows in excess of €70bn across Europe, according to the latest Money Monitor from Lyxor ETF.
Global fixed income topped the table with €17.5bn net new assets, followed by USD (€9.1bn), euro (€5.1bn) and emerging markets, which experienced outflows of €0.1bn from open-ended funds, but was buoyed by ETF inflows of €0.4bn.
Although fixed income ETFs experienced a strong month, open-ended fixed income funds took the majority of inflows, bringing €31.8bn of the total €38bn net new assets, and all regions saw positive net inflows.
Open-ended funds were the vehicle of choice for access to money market fixed income, gathering €34.6bn inflows, while money market ETFs negatively contributed, leaking €0.5bn of assets.
May also brought strong inflows for European ETFs, with fixed income receiving €6.2bn in May alone, bringing the asset class up to €6.7bn for the year.
ESG ETFs also saw positive flows of €2.4bn for last month, boosting an already record year to €10.6bn, the largest amount of flows for any ETF asset class.
Wealth managers expect record year for fixed income ETFs
Equities enjoyed net new assets of €9.3bn, but the majority of regions saw net outflows across open-ended and exchange-traded funds.
The inflows were supported mostly by the €14.1bn earned by open-ended world equity funds, but these were the only net positive flows from active management, with negative flows in Europe (€1bn), US (€0.6bn) and emerging market equities (€2bn).
By contrast, equity ETFs saw outflows in world (€0.5bn), Europe (€1bn) and emerging markets (€0.7bn), while its positive flows in US equities (€1.5bn) outweighed open-ended funds for net new assets of €0.9bn.
ESG, fixed income and active ETFs lead global demand
Technology, ecology, healthcare and energy featured in the top five sectors across cumulative ETF and fund flows in both European and world sectors, while the negative end of the tables looked very different, with financials the big loser globally seeing outflows of €1bn, while European real estate recorded net negative flows of €0.1bn.
Exchange-traded products enjoyed 94% of all commodities inflows in Europe, gathering €3.1bn of a total €3.3bn, of which over €2bn went to precious metals funds, followed by energy at less than €0.5bn.
Smart beta ETFs continued to suffer and recorded net outflows of €1bn, near entirely in equities.
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