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 €15.6 billion in July. Passive equity strategies had €15.7 billion of inflows, while active strategies recorded net outflows of €30 million.
In contrast, active equity strategies experienced net outflows, underscoring the shift towards more cost-effective, passive investment options.
In July, fixed-income strategies continued their strong performance, marking their ninth consecutive month of inflows with €32.3 billion in net gains. In contrast, allocation funds extended their losing streak to 14 months, experiencing outflows of €2.8 billion. Article 8 funds saw a resurgence, gathering €14.5 billion—their best result since January 2023—while Article 9 funds continued to struggle, losing €1.8 billion, marking ten consecutive months of net redemptions.
Global large-cap blend equity emerged as the top-selling Morningstar Category for the month, attracting €13.4 billion in inflows. iShares led the rankings of asset gatherers, with Nordea following closely behind, while Eurizon and Aviva were the month’s biggest laggards. Notably, Pimco GIS Income, Europe’s second-largest actively managed fund, secured €1.3 billion in inflows, whereas Vanguard Global Bond Index saw the largest outflows, losing €1.3 billion.
Money market funds also performed well, with net inflows of €27.5 billion in July. Overall, assets in long-term funds domiciled in Europe increased from €11.9 trillion at the end of June to €12.2 trillion by the end of July, reflecting a positive trend in the European fund market.
