
Lipper’s Jake Moeller examines how European fund-of-funds managers are gaining their exposure to high yield bond funds in September 2014. According to Lipper FundFile data, flows into bond funds in Europe in the nine months to September 2014 (€150bn) are double those going into equity funds (€75bn), showing just how resilient the bond rally has been. High yield has been a prime beneficiary as investors eke out income in an ongoing low-interest-rate environment. In local currency terms European high yield, with a 7.9% return, has had the strongest 12 months, with global high yield returning 2.2% over the same period.