A combination of greater clarity on trade tariffs and growth in global stock markets, has seen the net assets of European investment funds rise above €24 trillion.
Figures for July 2025 provided by the European Fund and Asset Management Association (Efama) showed that net inflows for UCITS and AIFs rose by 25% compared to the previous month (€66 billion to €83 billion).
Meanwhile, inflows for long-term UCITS funds, excluding money market funds, rose by 50% in the same period (from €45 billion to €67 billion).
Bond funds continued to see the biggest rise in inflows in July, from €28 billion to €41 billion, while equity funds registered a similar percentage in increased inflows, from €10 billion to €15 billion.
Multi-asset funds recorded the same level of inflows (€5 billion) in June and July, while AIFs was the one fund type that saw a deceleration in net inflows, from €8billion in June to €1 billion in July.
The figures come days after Efama issued research hailing the success of UCITS as one of the EU’s “most successful financial exports”.
However, Efama’s report, “UCITS, a global success story – The distribution of UCITS outside of Europe”, also urged EU policymakers to ensure that it provided a “stable and supportive” regulatory framework and avoided “frequent rule changes” in order to safeguard Europe’s position as a “global gold standard in investment funds” amid intensifying competition.
“Despite the significant growth of EU fund distribution internationally, global competition is intensifying,” said Thomas Tilly, senior economist at Efama. “Some countries are enhancing their domestic fund industries and offering regional alternatives to UCITS.
“UCITS have achieved global success due to their robust and stable regulatory framework, as well as their flexibility in terms of eligible assets. EU policymakers need to prioritise maintaining these qualities to preserve the international competitiveness of UCITS and ensure that they remain the gold standard for investment funds worldwide.”
