European-domiciled long term funds brought in €62.6bn for the month of October, while equity and fixed income strategies also attracted positive flows.
Equity funds gained €25.4bn in inflows for the month, with investors putting a net €3.4bn towards active strategies for the month. In the year as a whole, active strategies have lost €60.3bn. The trend stayed true for fixed income as well, with inflows of €41.8bn, a record since July 2019, and active inflows of €34.4bn.
Valerio Baselli, senior international editor for Morningstar, said: “In the shadow of the looming US presidential election, stock and bond volatility picked up in October. However, equity funds were able to take in €25.4bn of net inflows in the month.
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“After four months of net outflows, active equity strategies returned in positive territory, with €3.4bn of new subscriptions. Active equity funds only had two positive months in terms of flows since March 2023.”
While fixed income and equity funds picked up, alternatives faced outflows of €909m and allocation funds lost €1.7bn. Morningstar noted that allocation funds have seen only one month of positive flows since December 2022.
Sustainable investing faced some mixed results for the month, with Article 9 funds dropping €3.2bn but Article 8 funds adding €12.4bn. These results continue the larger trend across the year, where Article 8 funds have grown by €66.6bn and Article 9 has lost €17.6bn.
“From an organic growth perspective, Article 8 funds showed a 2.12% organic growth rate year to date. On the other hand, products in the Article 9 group saw a negative 5.39% organic growth rate over the same period.
“Between January and October, funds not considered to be Article 8 or Article 9 according to the SFDR had average organic growth rates ranging from 1.59% to 6.10%.”
This article originally appeared in our sister publication, Portfolio Adviser
