Investors poured €44bn into long-term Europe-domiciled funds in July a haul similar in magnitude to May’s EUR 47 billion amid continued appetite for fixed-income strategies, according to Morningstar’s European Asset Flows commentary for July 2024.
Antje Schiffler, editor, Morningstar said: ” Bond funds attracted a solid EUR 32.3 billion in net inflows in July, the group’s ninth straight month of inflows. This reflects a strong appetite for fixed-income strategies amidst varied global equity market performances.
” Equity funds attracted EUR 15.6 billion of net inflows in the month. This was entirely attributable to passive equity strategies (€15.7bn), while active strategies recorded net outflows of EUR 30 million.
Global large-cap blend equity funds were by far the top sellers in July. US large-cap blend equity funds also continued to be popular with European investors. This category posted the highest inflows since March 2023.“
In the first seven months of the year, Europe-domiciled long-term funds experienced €186bn of flows while equity funds attracted € 15.6bn of net inflows in the month.
Fixed-income strategies raked in €32.3bn of net inflows in July, with active bond funds attracting €22.9bn.
Allocation funds continued their 14 months long losing streak and shed €2.8bn. Meanwhile, alternative funds attracted €167m in net inflows.
Article 8 funds recorded their second-strongest result since January 2023, garnering €14.5 billion, but Article 9 funds on the other hand continued to bleed and shed €2.8bn in July. This marked the tenth consecutive month of net redemptions for these funds.
Global large-cap blend equity was again the top-selling Morningstar Category in the month, gaining €13.4bn, followed by US large-cap blend equity.
On the other end of the spectrum eurozone large-cap equity strategies lost most money (€1.93bn), followed by other equity (€1.9bn).
IShares topped the rankings of asset-gatherers, followed by Nordea. Eurizon and Aviva were the biggest laggards of the month. Pimco GIS Income, the second largest actively managed fund in Europe, had inflows of EUR 1.3 billion in July, while Vanguard Global Bond Index had the greatest outflows, down EUR 1.3 billion. Money market funds had EUR 27.5 billion in net inflows.
Assets in long-term funds domiciled in Europe increased to EUR 12.2 trillion by month’s end from EUR 11.9 trillion at the end of June.
