Quarter 1 - 2017
– This heatmap shows all the countries and all the mainstream equity classes. The more green, the more positive, the more red, the more negative.
– This clearly shows that almost everyone is positive towards Europe and negative towards the US.
– We’ve also listed them in order of overall positivity to equities. Italy, Spain and Portugal are the most bullish on equities; while The Netherlands, Norway and Sweden are the most negative.
Equities heatmap: net buyers Q1 ’17 %
– In 2016, for all European-domiciled funds, €80bn net flew into all actives and €48bn went into passives. For active funds, fixed-income, alternatives and multi-asset (allocation) products were the big winners while equity and convertibles lost out. For passive funds, fixed-income, equity and commodities products drew in the crowds.
– In the second chart we have zoomed into equities to have a more granular picture.
In 2016, all active developed equities sectors lost money with Europe taking a particular hit totalling €46bn. In sharp contrast, all passive US equity funds attracted a net inflow of €10bn. The other two remarkable asset classes are emerging equities and global equity funds with plenty of net inflows into both active and passive funds.
As Brexit negotiations draw to a close we looked into how UK and European fund selectors are planning on preparing for the upcoming year, how Brexit will affect their allocations and who they feel will lose out more after March 2019.
The great majority of wholesale fund selectors believe that ESG screening enhances investment performance.
Global emerging market (GEM) equities have been one of the most popular asset classes among pan-European fund selectors since Q3 2015 – but demand dropped dramatically during Q2 2018.
The fact that Europe is at an earlier stage in its credit cycle than the US is likely to drive issuance. While the US Federal Reserve has already embarked on rate hikes and begun unwinding monetary stimulus, the ECB is unlikely to begin hiking until it winds down its bond purchase programme, which is not expected to occur until later this year, and possibly not until next year. When rate hikes appear on the horizon, companies in Europe and elsewhere are likely to step up issuance in euro debt before it becomes more expensive to do so.
Register with us and we’ll tell you when get fresh data - so you’ll know what’s going to happen before it happens...
Fund Buyer Index
Expert Investor closely vet all applications on this website to ensure that applicants are verified fund investors. You will receive an email if your application is successful
Fund Buyer Index
Explore latest asset classes now