EFAMA's latest International Quarterly Statistical Release for Q2 2024 has revealed a another record-breaking quarter of worldwide bond sales.
Hailin Yang, sata analyst at EFAMA, said: “Net sales of global bond funds reached a new record of EUR 399 billion in Q2 2024, driven by investor anticipation of interest rate cuts by global central banks. China, in particular, recorded an all-time high in net sales.”
Net assets of worldwide investment funds increased by 2.3% in euro terms, reaching €70.6trn at the end of June 2024. Measured in US dollar terms, the net assets rose by 1.3% to $75.6trn. Measured in local currencies, net assets in the two largest fund markets, the United States and Europe, increased by 1.5% and 2.2%, respectively.
Net sales of global long-term funds further strengthened in Q2 2024 thanks to strong demand for bond funds.
Net sales of worldwide long-term funds recorded net inflows of €518bn, compared to €501bn in Q1 2024. The Asia-Pacific region recorded the highest net inflows (€242bn), compared to €133bn and €98bn in Europe and the United States, respectively.
Worldwide equity funds recorded net inflows of €122bn, down from €194bn in Q1 2024. Ireland led with the highest net sales (€38bn), followed by Japan (€26bn) and the United States (€25bn).
Worldwide bond funds reached a record high with net inflows of €399bn, up from €342bn in Q1 2024. The Asia-Pacific region reported net inflows of €159bn in Q2 2024, with China setting a record at €151bn. The United States and Europe recorded net sales of €113bn and €82bn, respectively.
Multi-asset funds continued to experience net outflows, totalling €55bn, marking the ninth consecutive quarter of negative net sales. The United States accounted for the majority of these net outflows (€41bn), followed by the Americas and Asia-Pacific, with net outflows of €18bn and €5bn, respectively. Europe was the only region to record net inflows (€9 bn).
Net inflows into worldwide money market funds recorded a slight decrease but remained robust overall.
Worldwide money market funds (MMFs) recorded net inflows of €244bn, down from €255bn in Q1 2024.
Net sales of MMFs in the Asia-Pacific region amounted to €98bn in Q2 2024, compared to €169bn in Q1.
MMFs in the United States reported net inflows of €97bn, up from €53bn in Q1 2024.
European MMFs saw net inflows of €29bn in Q2 2024, slightly up from €21bn in Q1 2024.
