Global fund flows remained positive during Q1 2025, despite market volatility, geopolitical tensions and economic uncertainty, according to data from the European Fund and Asset Management Association (Efama).
Net assets of worldwide investment funds declined by 3.1% in euro terms to €73.9 trillion, though they rose by 0.8% when measured in US dollars due to currency movements. According to the trade body,. local currency valuations showed decreases in the US and European market net assets down by 0.8% and 1.2%, respectively.
Long term funds globally attracted €394 billion in net inflows, a drop from €702 billion in Q4 2024. Europe led with €183 billion in net sales, mainly from Ireland, which brought in €80 billion. The US followed with €147 billion, while Canada contributed €37 billion of the €39 billion total for the rest of the Americas. The Asia Pacific saw €24 billion in inflows, as China recorded net outflows of €60 billion, according to Efama’s data.
Equity fund inflows fell to €148 billion from €353 billion in Q4. Europe led with €64 billion in inflows—€56 billion of which came from Ireland. The US registered €26 billion in net sales, while Japan and South Korea contributed positively within Asia. China saw sizeable outflows, according to Efama’s data.
Bond funds gained €214 billion globally, led by the US with €156 billion. European inflows reached €77 billion, thanks to Luxembourg (€21 billion), Ireland (€17 billion) and France (€12 billion). However, China reversed course from Q4, with €49 billion in net outflows.
Esma vs. Efama: Debate over fund cost analysis
Multi-asset funds recorded €37 billion in net outflows, compared to €4 billion in Q4. Most of the withdrawals came from the US (€47 billion) and China (€12 billion), while Europe attracted €20 billion in new investments.
Global ETFs gathered €442 billion, down from €551 billion the prior quarter. The US once dominated with €284 billion in inflows, followed by Ireland (€63 billion), Luxembourg (€26 billion) and Canada (€25 billion).
Money market funds gained €149 billion in Q1 compared to €545 billion in Q4. The US remained the main driver, with €123 billion in net sales. Europe added €39 billion, led by Luxembourg and Ireland, while China and Japan saw respective outflows of €36 billion and €5 billion.
“Across most regions, net fund sales slowed compared to Q4 2024, but remained generally positive,” said Hailin Yang, senior data analyst at Efama. “This occurred in a volatile and uncertain market environment, with investor sentiment negatively affected by geopolitical tensions and economic uncertainty.”
