Europe-domiciled long-term funds experienced net inflows of €49bn in 2023, dragged down by a subdued second half of the year, according to Morningstar’s European Asset Flows data and commentary for December 2023, also covering the year-end.
Money market funds attracted €196bn in 2023, about 80% more than in 2022, marking their second-best year ever in terms of flows.
Equity funds attracted €17.5bn of net inflows in 2023. However, the overall result is only attributable to the exploit in the first quarter.
Fixed-income funds had a very positive year, €163bn in net inflows in 2023. Last year, bond funds had only one negative month in terms of flows.
Long-term passive funds classified as SFDR Article 8 shed €23.6bn last year, while Article 9 strategies were able to attract €4.4bn.
Overall, passive management showed a positive organic growth rate at 8.6% in 2023, while active products had a negative 2.1% OGR in the same period (money market funds excluded).
With €7.1bn and €6.3bn of net inflows, respectively, global and US large-cap blend equity funds were the most sought-after products in December for the second month in a row.
The two equity categories also ranked first and third, respectively, on the annual flows’ scoreboard.
Among fund houses, BlackRock ranks top in the annual flow chart, with €68.4bn net inflows, followed by Vanguard and Xtrackers.
Eurizon was the asset manager with the largest outflows in 2023 (€17bn), followed by Credit Suisse (€14bn).
Pimco GIS Income Fund was the top seller of 2023, followed by iShares Core MSCI World ETF. Royal London US Equity Tilt topped the list of outflows in 2023.
Assets in long-term funds domiciled in Europe rose to €11.036trn at the end of December 2023, up from €10.637trn as of 30 November.