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European investors flock to equities in September

Euro equitiesEuropean investors flocked to equities in September, which saw its highest level of inflows for a one-month period since February 2018.

Net new cash reached €13.7 billion throughout the month. Money market funds, on the other hand, saw net redemptions of €17.3 billion signalling a risk-on stance amongst investors, according to data from Morningstar.

The recovery in equities, following August’s global slump, was driven in part by European long-term investors.

Overall, long-term funds enjoyed inflows of €405 billion for September.

“Aside from the positive demand, market appreciation effects propelled assets under management in long-term funds domiciled in Europe to a new historical high of €9.228 trillion,” said Ali Masarwah, director of regional editorial research.

Despite a slowdown in bond fund sales, demand remained strong at €23.7 billion. Alternative funds suffered, seeing their thirteenth consecutive month of outflows with investors pulling out €2.7 billion.

Valerio Baselli, senior editor, regional editorial research, said: “The march of passive funds has continuously outpaced the growth of actively managed funds in the past decade – globally and in Europe, too.”

Exchange-traded funds and open-ended trackers attracted €24.7 billion of inflows in September, whilst actively managed funds saw outflows of €1.6 billion.

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