Morningstar: Passive equity funds rally while active experience continued outflows

Morningstar: Passive equity funds rally while active experience continued outflows

March 18, 2024

Fixed Income Equity
Aandelenkoersen

Morningstar today published its European Asset Flows data and commentary for February 2024.

Key takeaways include:  

  • Europe-domiciled long-term funds experienced EUR 19.4 billion of net inflows in February 2024.
  • Equity funds were in positive territory for the second consecutive month, collecting EUR 5.1 billion in February and EUR 13.5 billion year to date. It was a one-sided story, with passive equity funds taking in EUR 19.1 billion of net inflows in the month, while active equity funds bled again.
  • Fixed-income strategies had another strong month, with EUR 30.9 billion of net inflows in February. This followed a strong January with EUR 31.8 billion of net inflows, which marked the strongest month since July 2021.
  • Bonds were the only category that saw positive inflows in both active and passive strategies.
  • Allocation and alternative funds continued to bleed assets with EUR 9.9 billion and EUR 2.0 billion of net outflows, respectively.
  • Article 8 fund posted net inflows of EUR 5.4 billion, the second consecutive positive month for the category after seven months of outflows; conversely, Article 9 products shed EUR 2.1 billion.
  • Global large-cap blend equity was the top-selling Morningstar Category in the month, followed by fixed-term bond funds. On the other hand, other allocation and sector-equity ecology thematic funds saw the highest net outflows at the category level, followed by EUR flexible allocation global.
  • UBS topped the ranking of asset-gatherers in February as it continued to transfer funds from Credit Suisse, which saw the largest outflows in February.
  • Pimco GIS Income Fund had inflows of EUR 1.96 billion in February, while iShares Core € Corp Bond ETF topped the list of outflows with EUR 2.1 billion in net redemptions.
  • Money market funds saw EUR 9.4 billion walk out the door, which marked the first negative month since June 2023.
  • Assets in long-term funds domiciled in Europe increased to EUR 13.088 trillion by month's end from EUR 12.899 trillion at the end of January.  

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