After facing €43.2 billion in net outflows in October, long-term funds domiciled in Europe saw a turnaround, recording €13 billion in net inflows in November.
According to the Morningstar Direct Asset Flows Commentary: Europe, this shift in investor sentiment could be attributed to positive indicators, including a more cautious stance from the US Federal Reserve in response to signs of a cooling economy and softer price growth data.
In November, global stocks rebounded by 9% in US dollar terms, while global government bonds gained 3% (in hedged US dollar terms), reflecting economic resilience, ongoing disinflation and a growing belief that interest rates in developed markets may have reached their peak.
Equity funds rebounded with a positive influx of €9.7 billion, led by passive equity funds accumulating €19.8 billion.
Fixed-income strategies also attracted new investments, garnering €22.2 billion in net inflows. However, allocation and alternative funds experienced outflows of €11.6 billion and €3.1 billion, respectively.
Article 8 long-term funds lost €6.9 billion, while Article 9 products had outflows of €1.5 billion but demonstrated a positive organic growth rate for the year at 1.77%.
Global large-cap blend equity was the top-selling category, while moderate-allocation funds in euros faced the highest net outflows at €2.2 billion.
BlackRock led asset-gatherers, with State Street and Vanguard following. The newly launched Capital Group Global New Perspective (LUX) attracted €4.6 billion in inflows, while Capital Group New Perspective (LUX) experienced €4.3 billion in net redemptions.
Money market funds saw substantial net inflows of €48 billion, and total assets in European long-term funds increased to €10.637 trillion by the end of November.
© 2023 funds europe
