Europe-domiciled equity funds registered €29.9bn net inflows in May in the best month for flows into the asset class so far this year.
Overall, the European fund universe attracted €54bn net inflows in the month.
Investors placed €30bn into fixed income strategies. May was the 18th month of positive flows for the asset class out of the last 19.
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Article 8 funds attracted €18.7bn net inflows in May, marking the best month for the classification since December 2022. However, Article 9 products leaked €617m.
Allocation and alternative funds continued to bleed assets with net outflows of €4.1bn and €1.2bn respectively.
Valerio Baselli, senior international editor, Morningstar, said: “In May, investors showed positive sentiment, arguably driven by hopes of interest-rate cuts and positive macro data on economic growth, pouring €54bn into long-term Europe-domiciled funds last month, making it the best month in terms of flows in 2024 so far.
“Global stocks rebounded strongly in May from the prior month’s losses, with overall developed markets outperforming emerging markets. In this context, investors showed very positive sentiment on stocks, with equity funds taking in €30bn, the best monthly result in terms of flows since January 2022. Passive strategies had the lion’s share, with €20.3bn of net inflows in the month. Nevertheless, active equity funds were able to cash in €9.7bn, therefore ending a 14-month period of monthly net outflows.
“Bond funds, for their part, were showered with €30.2bn in May, the 18th month of positive flows out of the last 19. Both passive and active strategies shared the spoils, with €12bn and €18.3bn of net inflows, respectively. The fixed-term bond category was the top seller in May, followed by EUR ultra-short-term bond funds.”
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