Investors injected €48.4 billion into long-term Europe-domiciled funds in July, marking the highest monthly inflows since January 2023, driven by strong demand for fixed-income strategies, according to Morningstar.
According to the data provider’s European Asset Flows report for July 2024, equity funds saw net inflows of €10.1 billion in July, largely due to passive equity strategies, which attracted €12.5 billion.
In contrast, active equity strategies experienced net outflows, underscoring the shift towards more cost-effective, passive investment options.
Fixed-income funds led the charge, bringing in €42.6 billion, the highest monthly inflow since June 2019, reflecting investor preference for stable returns amid market volatility.
Bond funds saw third best half-year on record in H1 2024: Morningstar
Meanwhile, allocation funds continued to struggle, extending their 14-month losing streak with a €2.9 billion outflow. Alternative funds managed to buck the trend, attracting €236 million in net inflows.
Sustainable investment strategies had mixed results. Article 8 funds, which promote environmental or social characteristics, recorded their best month since January 2023, gathering €20.5 billion. However, Article 9 funds, aimed at sustainable investments, continued to see outflows, losing €797 million, marking ten consecutive months of net redemptions.
In terms of performance, global large-cap blend equity was the top-selling category, gaining €13.9 billion, while Japan large-cap blend equity strategies saw the most significant outflows at €3.3 billion. M&G topped the asset-gatherer rankings, with significant inflows into its Asian local currency bond fund, while BlackRock faced substantial outflows from its Japan Equity 1 fund.
Overall, assets in long-term funds domiciled in Europe increased from €11.904 trillion in June to €11.980 trillion by the end of July, highlighting the sector’s resilience amid market fluctuations.
