Equity funds globally pulled in $610 billion of the nearly $1 trillion in overall net inflows during 2013, slightly higher than the peaks in 2006 and 2007, according to a study by Strategic Insight.
Non-traditional strategies, including absolute return and liquid alternatives, captured more than $250 billion of net flows around the world during 2013 while interest in bond funds plummeted, pulling in $110 billion of net inflows globally in 2013 vs. $690 billion in 2012.
“Demand for non-traditional income, liquid alternatives and asset allocation solutions expanded and will continue to rise alongside the equity revival,” said Jag Alexeyev, head of global research at Strategic Insight, in a news release.
Funds in Europe and cross-border captured a total of €320 billion ($425 billion) of net inflows during 2013, up 12% from the prior year, excluding money market vehicles. Broken down, cross-border international funds based in Europe, which are also sold in other markets such as Asia and Latin America, gained €220 billion, while the local funds in Europe captured €100 billion.
European and cross-border funds using equity strategies captured 33% of inflows during 2013, compared to 4% in the year before. Mixed-asset funds attracted 31% of inflows, rising from 10%. Bond funds saw their share diminish but still accounted for 30% or €100 billion of net gains. Much of this went to high-yield, global unconstrained multisector bond and flexible income strategies.
