European equity income funds under management increased 20 percent in value during the past year, according to a new report.
Cerulli Associates discloses this finding in the November 2013 edition of “The Cerulli Edge: European Monthly Product Trends.” The report explores trends respecting mutual funds, money market funds and new products, including product developments by country.
The report shows that European equity income funds under management reached €180 billion ($244.8 billion) in August 2013 (year-to-date), up from €150 billion ($204 billion) in 2012. Net new flows into equity income funds over the same period rose to €15 billion ($20.4 billion) from €12 billion ($16.3 billion).
The number of European equity income funds between 2012 and August of 2013 also increased to 449 funds from 434.
“Fund groups are hoping that dividend-dependent equity income strategies can sustain them until Christmas and beyond,” the report states. “Their message is simple. With bond yields at historic lows and interest rates set to rise, the bond bonanza is ending.