Antje Schiffler, Editor, Morningstar: "In July, investors funnelled €48.4 billion into long-term Europe-domiciled funds, marking the best monthly inflow since January 2023. This surge reflects a strong appetite for fixed-income strategies amidst varied global equity market performances. Notably, active fixed income strategies attracted €32.7 billion, driven by a robust interest in Asian local currency bonds. Meanwhile, investors withdrew €3.3 billion from Japanese large-cap equities, making it the category with the largest outflows in July, while global large-cap blend equity once more was the category that saw the largest net inflows.” -
Key takeaways include:
• Europe-domiciled long-term funds experienced EUR 48.4 billion of net inflows in July 2024 and EUR 188.7 billion in the first seven months of the year.
• Equity funds attracted EUR 10.1 billion of net inflows in the month. This was entirely attributable to passive equity strategies (EUR 12.5 billion), while active strategies recorded net outflows.
• Fixed-income strategies picked up momentum and raked in EUR 42.6 billion of net inflows in July, marking the strongest month since June 2019.
• Allocation funds continued their 14 months long losing streak and shed EUR 2.9 billion. Meanwhile, alternative funds attracted EUR 236 million in net inflows.
• Article 8 funds recorded their best result since January 2023 and gathered EUR 20.5 EUR. Article 9 funds, on the other hand, continued to bleed and shed EUR 797 million in July. This marks 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 EUR 13.9 billion, followed by Asia bond – local currency.
• On the other end of the spectrum, Japan large-cap blend equity strategies lost most money (EUR 3.3 billion), followed by eurozone large-cap equity (EUR 1.9 billion).
• M&G topped the rankings of asset-gatherers, followed by iShares. BlackRock and Eurizon were the biggest laggards of the month.
• M&G (Lux) Asian local currency bond fund had inflows of EUR 6.8 billion in July, while BlackRock Japan Equity 1 fund saw EUR 3.2 billion walk out the door.
• Money market funds had EUR 32.6 billion in net inflows.
• Assets in long-term funds domiciled in Europe increased to EUR 11.980 trillion by month's end from EUR 11.904 trillion at the end of June.
The full report can be found here.
|
