European investment funds experienced a “record-breaking” year in 2024, with net inflows reaching €665 billion, according to the European Fund and Asset Management Association (Efama).
This marked a jump from the €237 billion recorded in 2023, reflecting growing investor confidence and improving market conditions, shared the trade body.
Ucits (Undertakings for Collective Investment in Transferable Securities) funds led the way, attracting €618 billion in net sales, more than tripling the €183 billion seen in the previous year. Equity Ucits saw a rebound, with net inflows worth €141 billion, largely driven by record investments in equity ETFs.
“Equity Ucits inflows rebounded in 2024, driven by strong stock market performance,” said Bernard Delbecque, senior director for economics and research at Efama. “Meanwhile, other Ucits categories followed similar trends to 2023: sustained demand for bond Ucits as interest rates declined, record-breaking net sales of both ETFs and Money market funds (MMFs), and continued net outflows from multi-asset Ucits.”
November 2024 saw record ETF equity Ucits inflows: Efama
Bond Ucits also had a standout year, benefiting from falling interest rates. Investors poured €275 billion into bond funds, nearly doubling the €144 billion recorded in 2023. Non-ETF bond Ucits dominated inflows with €223 billion, while bond ETFs attracted €52 billion. Multi-asset Ucits, however, continued to struggle, posting net outflows of €43 billion, though this was a notable improvement from the €120 billion outflows in 2023.
MMFs also enjoyed demand, registering net inflows of €223 billion. According to Efama, the persistent inverted yield curve throughout 2024 made short-term assets particularly attractive to investors looking for a cash alternative. Meanwhile, ETFs continued to gain traction, with net sales surging to €261 billion, exceeding the previous record of €169 billion set in 2023.
Alternative investment funds (AIF) posted positive net inflows as well, totalling €47 billion, slightly lower than the €54 billion recorded in 2023. Bond AIFs led the segment with €39 billion in net sales, followed by multi-asset AIFs with €37 billion. Equity AIFs, however, saw net outflows of €29 billion, driven primarily by pension fund transitions in the Netherlands and Denmark.
“Despite global stock markets edging lower, net sales of equity Ucits rose to a new 44-month high in December 2024,” said Thomas Tilley, senior economist at Efama. “This was thanks to strong net inflows into equity ETFs, in addition to non-ETF equity funds returning to positive territory after being negative for most of the year.”
Overall, Ucits and AIFs recorded €80 billion in net sales in December, slightly down from €95 billion in November. Equity funds saw a strong end to the year with €41 billion in net inflows, while bond Ucits attracted €22 billion. Multi-asset Ucits continued to see outflows, though at a reduced pace of €0.3 billion.
