European bond funds experience increased demand

In April, European bond funds witnessed a surge in investor demand, attracting net inflows of €16 billion, according to the European Fund and Asset Management Association (Efama).  

In April, European bond funds witnessed a surge in investor demand, attracting net inflows of €16 billion, according to the European Fund and Asset Management Association (Efama).   

This marked a significant increase from the previous month’s €6 billion, highlighting a growing investor confidence in the market. The report suggests that the heightened interest in bond funds reflects a belief among investors that inflation will continue to decline. Alternative investment funds (Aifs) also saw a rise in popularity, receiving net inflows of €15 billion, a substantial jump from the €2 billion recorded in March.  

However, the European Ucits market experienced a decline in net inflows, with long-term Ucits dropping from €8 billion in March to €6 billion in April. Equity funds witnessed net inflows of €3 billion, while multi-asset funds attracted €6 billion in net inflows. On the other hand, Ucits net sales decreased from €29 billion in March to €19 billion in April.  

The increasing demand for fixed income products has prompted European asset managers to adapt their product offerings, as seen with the launch of a high-income fund by UBP, targeting high-income bonds and subordinated corporate and financial debt. Overall, the article highlights the shifting preferences and trends within the European investment landscape. 

Read more: https://www.funds-europe.com/news/bond-fund-inflows-rise-10bn-in-april