Morningstar: European-domiciled funds pull in €13bn of net inflows for November

BlackRock, State Street, and Vanguard bring in largest net flows

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European-domiciled long-term funds ended on a high note for the year, with €13bn (£11.2bn) of net inflows for the month of November, according to Morningstar’s monthly platform report.

Equity funds made it back to the green after a three-month slump in the negatives, bringing in a net £9.7bn. Passive equity funds were the leaders in this category with €19.8bn in net inflows.

See also: Tech funds tops returns in ‘risk-takers’ November

“Equity funds returned to positive territory after three months, cashing in €9.7bn. Like what we have seen in recent months, with the exception of June, outflows were entirely attributable to actively managed products, which shed €10.1bn in November,” the report said.

“Meanwhile, passive equity funds attracted €19.8bn. Global and US large-cap blend equity funds, as well as technology strategies, were the most sought-after categories.”

In a challenging year for sustainability funds, Article 8 funds bled €6.9bn in November while Article 9 shed €1.5bn. However, Article 9 was still able to build positive organic growth for the year of 1.8%. Fixed income had a positive month, with €22.2bn in inflows.

“The pause of major central banks in their rate hikes gave a new boost to the fixed income space: bond funds were showered with €22.2bn,” the report said.

“In this case, both active and passive products shared the spoils. Fixed-term bond and EUR corporate bond funds attracted €5.7bn and €5.3bn, respectively.”

Across individual companies, BlackRock, State Street, and Vanguard brought in the largest net flows, attracting €9.5bn, €3.5bn, and €2.7bn, respectively. Eurizon, Abrdn and Swiss Life experienced the largest outflows with losses of €2.5bn, €1.4bn, and €1.3bn.

In the past year, Baillie Gifford weathered a 16.1% drop in organic growth rate while Swisscanto rose 14%.

By fund, the iShares Core € Corp Bond ETF built €2.5bn in the month and the Pimco GIS Income had net inflows of €1.3bn.

For outflows, Swiss Life Fd (CH) Eq Glb Pro Eh CHF fell €1.3bn in the past month and Pimco USD Short Maturity ETF recorded outflows of €1.1bn.

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