Fixed income suffers most as bear market sets in

Net outflows of $9.7bn

Elliot Gulliver-Needham
clock • 2 min read
Investors are turning to ‘cash-generative blue chips’ to avoid risk
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Investors are turning to ‘cash-generative blue chips’ to avoid risk

Global fixed income has suffered more than equities as it experiences a dramatic rise in outflows, according to new research from Calastone.

The report found that bond funds have experienced net outflows of $9.7bn between January and May 2022, which can be attributed to risk aversion and rising yields. Equity funds have also seen outflows, reaching $1.6bn in the same period, compared to $28.7bn inflows in the same period last year. However, these have not yet reached the same level as fixed income or previous periods of outflows. Despite fixed income making up only 19% of AUM, compared to 47% for equities, bond funds saw larger net inflows from 2019 up to this year, with $74.1bn compared to $71.6n for equities. Now, they a...

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