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.
“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.”
See also: Calastone: Equity funds suffer worst outflows on record
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%.”
