In April, when looking at global inflows, we observe that risk appetite turned in favor of equity exposures compared to March…
Global Flows of April 2019, in a nutshell
+39.3bn€ (Total net flows)
+14.3bn€ (North Am equities)
+6.3bn€ (Sectors & Smart Beta equities)
+5.2bn€ (Corporate bonds)
Monthly new net assets were mostly invested in Equity ETFs, that attracted more than 28bn€ in the world.
These flows were mainly driven by North America stocks, which accounted half of net new assets, followed by Sectors & Smart Beta exposures with 6.3bn€, Japanese stocks with 5.6bn€ and Emerging Markets equities with 1.6bn€ of inflows.
European equities also got back to a positive scenario with close to +710m€ of new net assets in April vs -730m€ in March.
While on the fixed income side, the asset class attracted less money compared to previous months, with +12.3bn€ vs +17.5bn€ in March.
Within the asset class, Corporate bond ETFs remained preferred by investors’ with 5.2bn€ followed by Government Debt ETFs with more than 3.1bn€ of net new assets in April.
European Flows this month highlights +3.6bn€ : (Total net flows in Europe)
Equities : -692m €
– Trends in investors’ asset allocation followed the same path compared to last month, and we did not see a particular impact from recent events, such as Spanish elections or recent moves on US markets.
– Equity ETFs continued to suffer outflows. Investors bought global equities, gathering 1.2bn€ of net new assets while they continued to sell Eurozone stocks (-2bn€), and started selling US equity ETFs in a limited proportion however.
– Inflows on global Emerging Markets Equities were even bigger compared to previous months, showing that the EM exposures are regaining investors’ attention and amounted to close to 930m€ of new net assets during the month.
– On smart beta, we saw very positive flows (+1.4bn€), compared to last month. Mostly on defensive factors (quality and minimum volatility).
– The interest for SRI is continuously growing in Europe, where we observed close to 270m€ of flows for sustainable ETFs during the month, mainly on global equities, followed by Europe and Emerging Markets stocks.
Bonds : + 4.3bn€
– In Europe, Fixed Income ETFs continued to benefit from inflows in April, but at a lower scale compared to the previous months.
– On the government debt side, emerging countries continued to be favored by European investors, with close to 1bn€ of net new assets.
– On the Corporate side, April saw a switch compared to last month in Europe, this time high yield Eurozone bonds are in the top of the month inflows, with 965m€ of new net assets, followed by Eurozone investment grade credit, amounting close to 765 m€ of inflows.