Investment sentiment darkens, again
Monetary easing in both the US and Europe provided only short-term boosts to investor sentiment, according to the latest data released by funds tracking and analysis firm EPFR Global.
In its latest analysis, the company said the champagne that was uncorked in September in the wake of the US Federal Reserve and European Central Bank's confirmation of further quantitative easing had lost its fizz by early October.
It said this was because investors had switched their focus to America's "fiscal cliff" and Spain's efforts to escape the budgetary straight-jacket that accompanies eurozone bailout packages.
The EPFR analysis said this had resulted in European equity funds seeing a three-week streak of inflows come to an end, while US equity funds had posted their second consecutive weekly outflow.
It said flow data from the week ending 3 October also suggested that recent moves by central banks had prompted investors to reassess their strategies for maximising yield in such a low-interest environment.
The analysis said dividend equity and high-yield bond funds had posted outflows for the first time since June, while commitments to mortgage-backed bond funds had hit a 17-week high.
Socially responsible investments funds had recorded their best week since the first quarter, and both emerging market equity and bond funds had attracted over $1 billion in inflows.
Recommended for you
Betashares chief executive, Alex Vynokur, has said that the firm is focused on financial advisers “more than ever” as it grows the business, having announced a merger with managed account provider InvestSense.
L1 Capital has confirmed it intends to vote against the conversion of the Platinum Capital LIC into a listed ETF, meaning the deal “has a high probability of failing” due to L1’s substantial shareholding.
Pinnacle Investment Management has continued its focus on international expansion with the appointment of a managing director from T. Rowe Price.
Financial research firm Wealth Data, which publishes the weekly financial adviser numbers, has been sold to fintech firm Padua Solutions.
