Europe-domiciled long-term funds attracted €50.6 billion in net inflows in November 2024, with passive strategies achieving a “record-breaking” €41.2 billion, according to Morningstar’s data.
US large-cap blend equity was the top-selling Morningstar Category of the month, followed by global large-cap blend equity and UK large-cap equity, according to the data. In contrast, global emerging-markets bond funds recorded the highest net outflows at €3.6 billion, followed by €2.8 billion in outflows from global emerging-markets equity.
Long-term funds classified as Article 8 under the EU’s Sustainable Finance Disclosure Regulation saw €4.5 billion in net inflows, while Article 9 products, designed to meet stricter ESG criteria, shed €500 million.
Valerio Baselli, senior international editor at Morningstar, said: “Equity funds maintained strong momentum, pulling in €39.2 billion—their best monthly performance since April 2021—while fixed-income strategies saw €13.6 billion in net inflows, marking their 13th consecutive month of positive flows.” Allocation funds returned to positive territory for the first time in 17 months, while alternative funds continued to struggle, experiencing €756 million in net outflows.
UK-managed portfolios sector slows as passive investments rise: Morningstar
Among providers, iShares led asset gathering for the month, followed by HBOS and Xtrackers, while Schroders, UBS, and Alfred Berg posted the largest outflows. According to the data, the newly launched Halifax UK Equity Tracker Fund made an impact with €5.3 billion in inflows. On the other hand, Alfred Berg Nordic Investment Grade Medium Duration, which was liquidated, accounted for €1.5 billion in redemptions.
Money market funds also gained a net €48.9 billion, their second-best monthly result in two years. By the end of November, assets in long-term funds domiciled in Europe grew to €12.733 trillion, up from €12.264 trillion at the close of October.
