Fixed income funds post ninth consecutive month of…

Meanwhile, the European market excluding the UK underperformed, while the UK market benefited from strong economic growth and data from the services sector. Asian markets were mixed: The Japanese market saw the beginning of an underperformance caused by the yen trade run that led to a sharp market sell-off in early August.

Global large-cap stocks were again the category with the largest net inflows last month. Overall, equity funds collected €15.6 billion. It was a one-sided story: passive strategies gained €15.6 billion, while active equity strategies lost €30 million.

Bond funds attracted solid net inflows of €32.3bn in July, the group’s ninth consecutive month of inflows.

Allocation strategies marked their 14th straight month of negative net flows, with €2.8 billion going out the door, bringing total outflows this year to €43.3 billion. Alternatives, meanwhile, have returned to modestly positive territory after spending much of 2022, 2023 and 2024 in negative territory, flow-wise.

Finally, money market funds had net new subscriptions of 27.5 billion euros, after collecting 28.8 billion euros in June.

Long-term index funds saw inflows of €24.3 billion in July, compared with €19.3 billion for actively managed funds.

The outflows of ecological funds continue

Funds falling within the scope of Article 8 of the Sustainable Finance Disclosure Regulation had net inflows of €14.5 billion in July. Article 9 funds (“dark green” strategies) continued to flow. Article 9 funds saw their tenth consecutive month of outflows, reducing by €2.8 billion.

From an organic growth perspective, Article 8 funds have shown an organic growth rate of 0.26% over the last 12 months. On the other hand, the products in the Article 9 group recorded a negative organic growth rate of 4.6% in the same period.

Morningstar Categories: Leaders and Laggards

Large-cap global equity funds were by far the best sellers in July. US large-cap mixed equity funds also continued to be popular with European investors. This category has seen the highest entries since March 2023.

Investors withdrew a modest amount from euro zone large caps. China equity funds have seen outflows in 15 of the past 16 months.

Funders: Leaders and Laggards

iShares topped the list of asset collectors last month, with net inflows of €7.4 billion in July. Swedish fund group Ruth Asset Management came second as large outflows due to a liquidation in June were offset by corresponding inflows into a new fund in July. PIMCO and iShares are up nearly 10% over the past year.

Suppliers that experienced exits had relatively modest amounts coming out of their coffers. Baillie Gifford’s assets fell from a peak of €93 billion in October 2021 to €45 billion at the end of July. The growth-oriented firm has endured 31 consecutive months of exits.

Note: The August 20 report contained incorrect flows for three funds: M&G (Lux) Asian Local Currency Bond Fund, M&G (Lux) Asian Corporate Bond Fund and BlackRock Japan Equity 1 Fund. The impact of these errors cascaded to all grouping levels, including the branding name, Morningstar category, and global category group. As a result, many of the figures in the revised report differ from the original