From Morningstar:

2024 is a pivotal year for the world with significant elections and the influence of megatrends like artificial intelligence. Despite ongoing geopolitical conflicts, investments remain sturdy. Equity funds saw significant outflows in January. The trend is similar to the previous year, with passive investments attracting inflows compared to active funds.

Equity funds face difficult times as most asset classes suffered net outflows in January. Global Large-Cap Blend Equity and US Large-Cap Blend Equity were among the few winners, while Global Corporate Bond and Other Bond also showed gains. The outflows from active funds and inflows into passive strategies marked the continuation of recent trends.

Three passive funds, including iShares ESG Overseas Corp Bond Index Fund (UK) and iShares North American Eq Idx Fund (UK), were among the top five for inflows, adding a total of £689 million to BlackRock’s assets. On the other hand, active funds occupy the top five spots for outflows in January. Federated Hermes S-T Sterling Prime and Fundsmith Equity were among the hardest-hit.

The fund industry saw a mixed bag in inflows and outflows in January. BlackRock led the pack with the biggest inflows, but Legal & General, Vanguard, and HSBC also attracted significant investments. Baillie Gifford and Abrdn suffered outflows, indicating preferences for these companies among investors. Schroders reported a loss of £115 million, struggling to match the success of other fund groups.



Read more: Equity Fund Outflows Continue in January