European Fund-Flow Trends, November 2019

It seems like the concerns of European investors regarding general economic growth and, therefore, declining earnings, are gone. This is in spite of continued uncertainty over Brexit and the trade war between China and the U.S. As a result, November was the ninth month during which long-term mutual funds posted net inflows this year. Equity…

Another positive month for the European ETF

November was another positive month for the European ETF industry as the promoters of ETFs in Europe enjoyed above average inflows in November. These led, in combination with the positive performance of the underlying markets, to an increase in assets under management in the European ETF industry from €809.3 bn as of October 31, 2019,…

Index Funds Are On the Rise

With the rise of ETFs, index mutual funds had been out favour with European investors until the year 2015. But even as index funds got some positive momentum since 2016, ETFs still experienced higher inflows. While I was analysing the year-to-date flows at the end of August, I was surprised that index funds (+€52.5 bn)…

The Fund Industry Needs to Re-invent Itself

The study “Searching for Growth in an Age of Disruption” conducted by the consulting firm Oliver Wyman and Morgan Stanley Research, estimates a mere one per cent compound annual growth rate for the revenues of asset managers. According to the authors of the study, the slowdown in revenue growth is driven by a growing unwillingness…