Investors put €1.3bn into equity funds last month, a modest result when compared to the two-year average, but one that allowed the global category group to return to positive territory after March redemptions.
According to Morningstar data on European fund flows in April, the infrastructure and clean energy sectors, as well as global large-cap blend and equity income funds, were the primary beneficiaries.
After the outflows in March, and despite growing concerns on the economy, rising inflation and the war in Ukraine, long-term funds domiciled in Europe attracted €8.2bn last month.
Fixed income funds took the biggest hit. With €2.7bn in net outflows, bond funds experienced their fourth consecutive negative month, with redemptions entirely attributable to active strategies.
"Alternative funds managed to attract €1.4bn: in an environment where both equity and bonds are suffering, investors have returned to look at these hedge funds' mimic strategies with more interest," said Valerio Baselli, investment specialist at Morningstar.
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Allocation funds had another successful month in April, collecting €6.7bn. The largest benefactors were moderate allocation funds in euros that invest globally, taking in €1.8bn.
Because of market depreciation, assets in European long-term funds fell to €11,469bn at the end of April 2022, down from €11,755bn at the end of March.
iShares topped the list of the asset-gatherers by branding name, followed by Lantern Structured AM and Vanguard. On the other hand, UBS, Eurizon, and KLP suffered the biggest redemptions.
The top seller of the month, excluding monetary products, was UBS SF MSCI ACWI ETF, while Focus Sicav US Treasury Bond USD fund experienced the largest net outflows.
