Confidence in the global economy and uncertainty about the US presidential election drove demand for equity and money market funds in Q3 2024, according to the European Fund and Asset Management Association (Efama).
Worldwide equity funds recorded a rise in net inflows, reaching €230 billion in Q3 2024, up from €116 billion in the previous quarter, according to the trade association for European asset managers. China led the pack with €84 billion in net sales, followed by the US with €62 billion and Ireland with €42 billion.
Bernard Delbecque, senior director for economics and research at Efama, said: “Net sales of equity funds strengthened in Q3 2024, driven by investor confidence in the global economy, particularly in Asia. At the same time, uncertainty surrounding the US election spurred increased demand for money market funds, especially in the United States and Europe.”
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Money market funds saw a surge in demand, with global net inflows rising to €367 billion, compared to €247 billion in Q2 2024. The US was the largest contributor, recording €297 billion in net inflows, up from €97 billion in the previous quarter. Europe also showed strong performance, with €96 billion in net inflows. In contrast, the Asia-Pacific region saw net outflows of €29 billion, led by a €20 billion decline in China.
The report showed mixed results for long-term funds, which showed positive net inflows of €458 billion globally in Q3. However, this was a decline from €505 billion in Q2 2024. Bond funds contributed €224 billion in net inflows, with the US and Europe adding €163 billion and €50 billion, respectively. China, on the other hand, reversed its Q2 trend with €38 billion in outflows.
Multi-asset funds faced challenges, losing a net €63 billion during the quarter. US and China accounted for most of the declines, while Europe posted €6 billion in net inflows.
ETFs maintained the growth momentum, with global net inflows reaching €461 billion, up from €292 billion in Q2. The US once again led with €272 billion in inflows, followed by China with €83 billion and Ireland with €52 billion, reflecting steady investor interest in these instruments.
Net assets of worldwide investment funds increased by 2% in euro terms to €72 trillion by the end of September 2024. Measured in dollar terms, the rise was even stronger at 6.7%, reaching $80.6 trillion.
