While long-term fund inflows decelerated, money market funds (MMFs) experienced a surge in demand, reflecting investor caution amid volatility, according to the European Fund and Asset Management Association’s (Efama) European quarterly statistical report for Q3 2024.
Net assets of Ucits and alternative investment funds (AIFs) grew by 2.7% in Q3 2024, with robust overall net inflows of €179 billion, shared the trade association for European asset managers. Ucits funds accounted for the lion’s share with €174 billion in net sales, while AIFs saw €5 billion in inflows. Despite slowing, long-term funds still registered positive net inflows of €83 billion, down from €110 billion in the previous quarter.
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Money market funds stood out with €96 billion in net inflows, an increase from €32 billion in Q2 2024, underscoring their appeal during uncertain times, according to the researchers. Meanwhile, Ucits ETFs continued to perform strongly, recording €57 billion in net sales during the quarter, bringing year-to-date inflows to €170 billion—already exceeding the total for 2023.
Sustainable Finance Disclosure Regulation (SFDR) Article 9 funds saw net outflows of €3.2 billion, while Article 8 funds attracted €37.5 billion in net inflows. European households remained active investors, with net fund acquisitions reaching €62 billion in Q2 2024.
Thomas Tilley, senior economist at Efama, said: “Net inflows into long-term funds slowed during the third quarter of 2024, while money market funds attracted strong net sales. In times of market volatility, MMFs often serve as a safe-haven investment option for investors.”
