Europe-domiciled long-term funds saw €40.2bn of net inflows in August, according to Morningstar's latest European Asset Flows data report.

Valerio Baselli, senior international editor, Morningstar said: “Despite the extreme volatility that kicked off the month, in August investors continued to show positive sentiment, arguably driven by hopes of interest-rate cuts. Investors poured EUR 40.2 billion into long-term Europe-domiciled funds, making it the second-best month in terms of flows in 2024 so far and reaching EUR 243 billion of net inflows for the year to date.”

Europe-domiciled long-term funds experienced €40.2bn of net inflows in August 2024 and €243bn for the year to date.

Equity funds' momentum continued, attracting €16.7bn of net inflows in the month. However, active equity strategies experienced net outflows again.

Fixed-income strategies had €26.9bn of net inflows in August and almost €230bn  in the first eight months of the year.

On the other hand, allocation funds continued to bleed assets, with €3.0bn net outflows.

Alternative funds returned to positive territory (€663m of net inflows), marking the second positive month in terms of flows since May 2022.

Long-term funds classified as Article 8 had €8.3bn of net inflows in August. Conversely, Article 9 products shed €587m.

Global large-cap blend equity was again the top-selling Morningstar Category, followed by the US large-cap blend equity category.

On the other hand, EUR government bond funds saw the highest net outflows at the category level (€1.4bn), followed by Asia ex-Japan equity funds (€1.2bn of net redemptions).

Last month, iShares topped the rankings of asset-gatherers, followed by Vanguard and State Street. KBC, Abrdn, and Baillie Gifford were the biggest laggards of the month.

AI Sterling Corporate Bond had inflows of €2.25bn in August, while Abrdn Euro Gov All Stocks had €1.3bn in net redemptions.

Money market funds had €62bn in net inflows and assets in long-term funds domiciled in Europe increased to €12.121trn by month's end from €11.406trn at the end of July.