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September's most subscribed funds: passive solutions, technology and ESG at the center of investors' attention
In August's most subscribed funds, we saw that investors focused mainly on money market funds, with interest in commodities also visible in Banco Best's ranking, and some conservatism in Banco Carregosa's most subscribed funds.
With six stock funds in Banco Best's most subscribed funds, the interest in commodities remains, but passive solutions and the search for technology and India also appear. "In commodities,” says Rui Castro Pacheco, the entity's Investment Manager, ”we have a preference for specialty metals, with the Invesco Gold & Special Minerals Funds, and for energy, with the Schroder International Selection Fund Global Energy.”
In passive management, there are two index funds, one on the more generic American index, the Fidelity S&P 500 Index Fund, and the other preferring the global stock index, the Fidelity MSCI World Index Fund. "As for the technology theme/sector, we saw a preference for the Fidelity Funds - Global Technology Fund and, for India, we saw a preference for the Jupiter India Select,” adds the professional.
The remaining four funds in the Top 10 invest in more conservative strategies, with one in real estate, one in treasury and two in floating rate bonds.
Interest in ESG has returned
"The month of September was very strong in terms of subscriptions compared to redemptions, although much of this is due to the influence of money market funds,” says Tiago Gaspar, head of Fund Analysis and Selection at Banco Carregosa. According to the professional, this shows that investors maintain a high demand for liquidity and security, "possibly reflecting economic uncertainty or a preference for a defensive position so that they can later allocate to riskier assets,” he explains.
As we can see from the table below, the PIMCO Income bond fund appears to be highly preferred in various currencies and with/without income distribution. This Top 10 also shows that interest in ESG has returned, with Nordea's fund. Finally, there is also a notable interest in the North American geography for investment in shares with two funds.
"Investors are looking for a combination of liquidity, security and more conservative strategies, with a strong interest in monetary and bond funds. However, there is also a visible rotation towards equity funds with less exposure to Europe and a strengthening of the US,” says the professional.
Most subscribed funds in September
Most redeemed funds
Banco Best's most redeemed funds in September were short-term bond funds. "With the fall in market rates, these funds, because they have very short maturities, will rotate their portfolio more quickly and thus adjust their expected return to lower levels. It's in times of falling interest rates that it's more interesting to have fixed-rate bond funds with longer maturities,” explains Rui Castro Pacheco.
With regard to Banco Carregosa's most redeemed funds, "although money market funds also appear at the top of the table, the redemption amounts are considerably lower,” says Tiago Gaspar, adding that "the presence of funds such as BlackRock Continental European Flexible may indicate that investors are moving away from European strategies, possibly due to economic uncertainties.”