(Bloomberg) -- Investors yanked money from European mutual and exchange-traded funds that mimic hedge funds in April, the eighth consecutive month of redemptions, according to Morningstar Inc.
Another “month of pain” for so-called alternative investment funds drove their assets under management down 10% in the 12 months through April to 423.5 billion euros ($474 billion), according to a Morningstar report on Friday. That decline resulted from outflows and poor performance, the report states. The broad category of alternative funds covers investment strategies including debt and currency arbitrage.
Actively managed equity funds are experiencing a “crisis of confidence,” researchers Valerio Baselli and Ali Masarwah wrote in the report. Active equity funds shed 14.2 billion euros in April, while passive funds that track indexes took in 2.9 billion euros.
By contrast, actively managed bond funds garnered 20 billion euros of new money, more than in any month since January 2018. Passive bond funds also saw increases.
To contact the reporter on this story: Silla Brush in London at sbrush@bloomberg.net
To contact the editors responsible for this story: Ambereen Choudhury at achoudhury@bloomberg.net, Patrick Henry, Nishant Kumar
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