From Morningstar: 2024-11-20 06:11:55

Despite global market setbacks in October, investors maintained positive sentiment with EUR 62.6 billion flowing into long-term Europe-domiciled funds, the best monthly result of the year. Active equity funds saw a return to positive territory with EUR 3.4 billion in new subscriptions after four months of net outflows.

In the lead-up to the US presidential election, stock and bond volatility increased, but equity funds attracted EUR 25.4 billion in net inflows in October. Active equity strategies recorded EUR 3.4 billion in new subscriptions, marking a return to positive territory after only two positive months since March 2023.

The ECB made a second consecutive rate cut in October, reducing the key deposit facility rate to 3.25%. In the UK, the new Labour Party’s budget increased state spending by over GBP 70 billion annually, funded by increased taxes and borrowing. Bond funds saw EUR 41.8 billion in net inflows, the best monthly result since July 2019.

Long-term index funds received EUR 29.2 billion in inflows in October, surpassing actively managed funds. The market share of long-term index funds rose to 29.19% from 25.89% in October 2023. Funds following Article 8 of the Sustainable Finance Disclosure Regulation had EUR 16.7 billion in net inflows, while Article 9 strategies saw outflows of EUR 3.0 billion.

In October, funds under Article 8 of the SFDR saw net inflows of EUR 16.7 billion, driven by global large-cap blend equity and EUR government-bond funds. Article 9 (“dark green” strategies) experienced net outflows of EUR 3.0 billion, marking their 13th consecutive month of outflows. Article 8 funds showed a 2.12% organic growth rate year to date, while Article 9 products had a negative 5.39% rate.

The top and bottom ten fund houses in Europe for October 2024 were ranked based on fundraising, excluding money market funds. Index funds gained market share, reaching 29.19% in October 2024 from 25.89% in October 2023. Bond funds saw EUR 41.8 billion in net inflows in October, the best result since July 2019.



Read more at Morningstar: October the Best Month for Fund Flows