Morningstar: European fund giants suffer outflows in December 2023

European-domiciled funds as a whole attracted a net €49bn in 2023

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European fund providers Axa and Ishares suffered net outflows in the final month of 2023, according to a Morningstar European fund flows report.

Investors pulled €2.6bn in (£2.2bn) net outflows from BNP Paribas in the month, the largest of any asset manager in absolute terms. The French asset manager leaked €6.3bn in the year as a whole.

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Ishares, known for its passive offerings, saw investors pull €1bn from its funds in December. The firm was hit with modest outflows of €26m in 2023.

Overall, Italian firm Eurizon was the asset manager with the largest outflows in 2023 at €17bn, followed by Credit Suisse at €14bn. BlackRock attracted the most cash, with inflows of €68.4bn.

European-domiciled funds as a whole attracted a net €49bn in 2023. Money markets pulled in €196bn, the second-best year on record for the asset class.

Passive strategies continued to capture the attention of investors, with a positive organic growth rate of 8.6% over the year. In contrast, active managers had a negative 2.1% organic growth rate, when excluding money market strategies.

Fixed income funds also enjoyed a positive year, with 4163bn flowing into the asset class. Meanwhile, equity funds attracted €17bn, though this was largely due to a strong Q1.

In terms of individual funds, the £2.8bn passive UBS (CH) Fund Solutions MSCI USA SF Index Fund received the most monthly inflows at £1.8bn.

The Swiss asset manager enjoyed a strong month for flows, with four funds among the top ten for inflows.

At the other end of the scale, investors pulled £1.6bn from the UBS Multi Manager Access US Equities, leaving its net assets at £451m.

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