02/05/2012

By Ilonka Oudenampsen

Long-term assets under management levels of European institutional investors reached €4,109bn in February 2012, their highest point in seven months, according to Cerulli Associates.

European investors increased their allocation to USD corporate high yield bonds, which saw net inflows of €3.6bn, and emerging market debt (€3.4bn) and asset allocation funds (€2.3bn). However, money market funds suffered net outflows of €12.0bn, with sterling dominated money market funds taking the biggest loss with €5.7bn, their largest withdrawals since October 2008.

Inflows into global equities doubled to €3.3bn in February compared to the previous month, evidencing the improving risk environment. Demand for the sector has been boosted by the two most risk-on markets in Europe, as cross-border and the United Kingdom saw inflows of €1.9bn and €0.9bn respectively.

Emerging market equities witnessed flows of €1.5bn, compared to €1.9bn for the whole of 2011.

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