European Fixed-Term Bond Funds
A Closer Look at a Growing Market
European fixed-term bond funds have moved firmly into the mainstream. Assets nearly tripled from EUR 86 billion in 2022 to EUR 237 billion by the end of 2025, as investors sought to lock in attractive yields while limiting duration risk in a changing interest-rate environment.
Morningstar Manager Research examines the evolution of Europe's fixed-term bond fund market, exploring what has fueled its growth, where investors may face hidden challenges, and whether these products have delivered on their promise compared with traditional bond fund alternatives.
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