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Morningstar: Appetite for equities and fixed income continues in February

According to EU Fund Flows report for February

Euro notes close-up: Macro image of two €50 banknotes, with focus on the map of Europe.


Investor appetite for equities and fixed income continued to strengthen as European-domiciled long term funds recorded €19.4bn (£16.6bn) net inflows in February, according to Morningstar’s latest EU Fund Flows report.

Equity funds enjoyed a second consecutive month of inflows, with €5.1bn flowing in.

Fixed-income strategies, meanwhile, experienced a net €30.9bn inflow, following on from a strong January which saw €31.8bn flow into the asset class.

Bonds also remained the only category where active managers continued to attract assets.

In February, active strategies gained €25.9bn, while index funds gathered just over €5bn. Fixed-term bonds, global bonds, and global flexible bonds (USD hedged) attracted the most euros.

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Article 8 funds attracted a net €1.6bn in its second month of inflows after seven back-to-back months of outflows. However, Article 9 strategies leaked €2.5bn in February.

Allocation and alternative funds continued to bleed assets, losing €9.9bn and €2bn respectively.

Money market funds also suffered outflows of €9.4bn, marking the first negative month for cash funds since June 2023.

A year on from its acquisition of Credit Suisse, UBS topped the ranking of asset-gatherers in February as it continued to transfer funds from its former rival, which saw the largest outflows.

Passive providers HSBC and Vanguard also continued to experience strong inflows, pulling in a net €130bn and €319bn over the period.

Pimco GIS Income Fund recorded the largest net inflow by individual fund, pulling in a net €2bn. At the other end of the table, iShares Core € Corp Bond ETF leaked €2bn.

This article was written for our sister title Portfolio Adviser

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