Fidelity European Growth is bestseller in first quarter
Continent’s largest equity fund pulls in e1.5bn from January to March 2004 while research shows six out of 10 bestsellers invested in bonds
Europe’s largest equity fund topped the list of the Continent’s top-selling products during the first quarter of 2004, according to Feri Fund Market Information.
Fidelity’s European Growth Fund attracted estimated new assets of E1.5bn from January to March, now boasting E14.3bn under management.
A bond-based exchange-traded fund managed by HypoVereinsbank was in second place, reflecting a significant German move into bonds during March. Bond funds from UBS and Deka attracted over E1bn each in the first quarter.
Feri’s managing director Diana Mackay said there has been a shift from other categories of funds into bonds by large asset allocators.
Six of out of the top 10 sellers in Q1 were invested in bonds. Ms Mackay said the trend would be even more visible during the second quarter.
“The market will be very volatile until the end of June, with the expectation of interest rates rises and the Iraq handover,” she said. “Things may settle down after that but we might have to wait until the US election to see people moving back into equities.”
One surprise was the presence of an Indian equity fund, managed by HSBC, in the bestsellers. The perception changed after the election, but Indian equities enjoyed a “good run” during the first three months, said Ms Mackay.
