Fixed-income strategies had a strong month, with €31.8bn of net inflows in January, the best monthly result since July 2021, according to Morningstar's European Asset Flows data and commentary for January 2024.

Europe-domiciled long-term funds experienced €24.9bn of net inflows in January 2024.

Equity funds returned to positive territory after the outflows seen in December, cashing in €4.6bn. It was a one-sided story, with passive equity funds taking in €19.4bn of net inflows in the month.

While fixed-income strategies had a strong month, allocation and alternative funds continued to bleed assets with €7.6bn and €2.1bn of net outflows, respectively.

Morningstar further highlighted that long-term funds classified as Article 8 had €162m of net inflows in January; conversely, Article 9 products shed €2bn.

Global large-cap blend equity was the top-selling Morningstar Category in the month, followed by US large-cap blend equity and EUR corporate bond funds.

On the other hand, Asia ex-Japan equity funds saw the highest net outflows at the category level (€2.1bn).

Last month, iShares topped the ranking of asset-gatherers, followed by State Street and Vanguard. Aviva, Eurizon, and Pictet were the biggest laggards of the month.

iShares Core S&P 500 ETF had inflows of  €2.8bn in January, while AI North American Equity Index Fund had €1.3bn in net redemptions.

Money market funds gathered €28bn in net inflows.

Assets in long-term funds domiciled in Europe increased to €12.899trn by month's end from €12.756trn at the end of December.

Valerio Baselli, senior international editor, said: "In January 2024, Europe-domiciled long-term funds thrived with EUR 24.9 billion in net inflows. Equity funds bounced back, securing EUR 4.6 billion, driven by a substantial EUR 19.4 billion influx into passive equity strategies.

"Fixed-income funds excelled, attracting EUR 31.8 billion in the best monthly performance since July 2021. Whereas allocation and alternative funds faced challenges, witnessing EUR 7.6 billion and EUR 2.1 billion in net outflows, respectively. Article 8 long-term funds ended a period of seven consecutive months of outflows, with EUR 162 million in net inflows, while Article 9 products experienced a decline, shedding EUR 2 billion.

"Overall, long-term fund assets in Europe increased to EUR 12.899 trillion by January's end from EUR 12.756 trillion in December."