Core Insights - The article discusses the significant structural adjustments occurring in the global public fund market by 2025, highlighting the ongoing shrinkage of actively managed open-end funds and the rise of the "ETFization" trend as a core driver for institutional investment strategies, particularly in the US and European markets [1][11]. Group 1: Market Trends - By 2025, the global public fund market is experiencing profound structural changes, with a notable decline in the size of actively managed open-end funds [1][11]. - The "ETFization" trend is becoming a key driver for institutional investment strategies, with actively managed ETFs emerging as the primary issuance force in the market [1][11]. - In the fourth quarter of 2025, the Greater China region saw a significant recovery in stock fund inflows, exceeding $33 billion in a single quarter [1][11]. Group 2: Research and Tools - The article emphasizes the need for institutional investors to have a robust research framework and tools that can penetrate underlying holdings and reach the core of strategies when selecting investment targets [1][11]. - Morningstar Direct is highlighted as a flagship investment research platform that provides comprehensive data on over 63,000 actively managed ETFs, including performance, risk, holdings, and issuance methods [1][11][12]. - The upcoming webinar aims to provide insights into the trends and product evolution in the global public fund market for 2025, focusing on how to utilize Morningstar Direct for in-depth research on overseas actively managed ETFs [4][5][11].

Core Insights - The article discusses the significant structural adjustments occurring in the global public fund market by 2025, highlighting the ongoing contraction of actively managed open-end funds and the rise of the "ETFization" trend as a key driver for institutional investment strategies [1][11]. Group 1: Market Trends - By 2025, the global public fund market is experiencing profound structural changes, with a notable shrinkage in actively managed open-end fund sizes [1][11]. - The "ETFization" trend is becoming a core driver for institutional investment strategies, particularly in the US and European markets, where actively managed ETFs are emerging as the primary issuance force [1][11]. Group 2: Fund Flows - In the fourth quarter of 2025, stock fund inflows in the Greater China region significantly rebounded, exceeding $33 billion in a single quarter [1][11]. Group 3: Research and Tools - The article emphasizes the need for institutional investors to adopt a robust research framework and tools that can penetrate underlying holdings and reach the core of strategies when selecting investment targets [1][11]. - The upcoming webinar will provide insights into the global public fund flow landscape for 2025 and demonstrate how to conduct efficient research on overseas actively managed ETF products using the Morningstar Direct terminal [1][4][5]. Group 4: Data and Analysis - Morningstar's database now includes over 6,300 actively managed ETFs, providing comprehensive data on performance, risk, holdings, and issuance methods [1][11]. - The webinar will also analyze the adaptability of ETF strategies under different issuance methods and review the successful experiences of key products [1][11]. Group 5: Morningstar Direct - Morningstar Direct is highlighted as a flagship investment research platform that offers a global investment database, featuring 600,000 funds, stocks, and market indices, widely used for fund selection, due diligence, and ESG research [1][12].

Global Fund Trends - In the first half of 2025, there was a significant turnover in the number of actively managed funds, with 3,958 new open-end funds launched, but only a net increase of 278 actively managed open-end funds. Conversely, ETFs saw a strong net growth of 1,051, with 1,264 new ETFs issued [4]. - Over $410 billion in net inflows were directed towards bond funds, which is double the amount flowing into equity funds. Meanwhile, allocation funds experienced a net outflow of approximately $20 billion [7]. Passive Investment Growth - The market share of passive investment products has steadily increased over the past decade, with the total size of global public funds growing by over 130%. As of June 30, 2025, the total management scale of passive products accounted for 43%, up from 23% ten years ago, while active products' share decreased from 77% to 57% [13]. Overseas Fund Allocation to China - There has been a noticeable recovery in the allocation ratio of overseas funds to Chinese stocks, which dropped from a peak of 11.07% in 2020 to a low of 4.79% in 2024. However, this ratio began to rise again in the second half of 2024, reaching 6.26% by the end of March 2025 [19]. - In the overseas Chinese-themed funds, passive products have surpassed active funds in scale, with passive Chinese-themed funds exceeding active funds by approximately $16 billion as of June 30, 2025 [21]. - Despite a period of net inflows from 2020 to 2022, overseas Chinese-themed funds experienced net outflows from 2023 to 2024, with total fund size decreasing from nearly $250 billion in 2021 to $175.2 billion by the end of 2024. In the first half of 2025, these funds saw a net outflow of about $2 billion, although their total size grew to $196.7 billion [23][24].