UCITS and AIFs experienced net inflows of €665bn in 2024, marking a substantial increase from net sales of €237bn in 2023, in EFAMA's latest monthly statistical release which shows the main developments for the European investment fund market in December 2024 and include a first overview and analysis of the full year 2024.
Net assets of European investment funds grew by 13.2%, reaching a new record high of €23.5trn.
UCITS registered net sales of €618bn in 2024, more than tripling from €183bn in 2023.
Bernard Delbecque, senior director for economics and research at EFAMA, said: “Equity UCITS inflows rebounded in 2024, driven by strong stock market performance. 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 MMFs, and continued net outflows from multi-asset UCITS”.
Thomas Tilley, senior economist at EFAMA, commented on the December 2024 figures: “Despite global stock markets edging lower, net sales of equity UCITS rose to a new 44-month high in December 2024. 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.”
Net sales of equity UCITS rebounded strongly in 2024, driven by record inflows into equity ETFs. After muted net sales of just €5bn in 2023, net sales surged to €141bn, supported by the strong performance of global stock markets, particularly in the US.
However, similar to the previous year, investors clearly preferred ETFs when investing in equity funds. Equity ETFs attracted a record €192bn in net new money, while non-ETF equity funds experienced net outflows of €51bn.
Investors poured into bond UCITS as interest rates began to decline. Several major central banks cut rates in 2024, with markets anticipating further easing. This fuelled annual net inflows of €275bn, nearly doubling the €144bn recorded in 2023 and marking the highest level since 2019. In contrast to equity UCITS, non-ETF bond UCITS dominated inflows, attracting €223bn, while bond ETFs saw net sales of €52bn.
Multi-asset UCITS faced a second consecutive year of net outflows, though at a slower pace than in 2023. Net redemptions totalled €43 billion in 2024, down from €120bn the previous year. This trend may reflect investors shifting from multi-asset UCITS into bond UCITS, as higher interest rates improved the risk-return trade-off in favour of bond funds.
Money market funds (MMFs) achieved a record-breaking year, with net inflows reaching an all-time high of €223bn. The surge was largely driven by an inverted yield curve, which persisted for much of 2024 and made short-term assets more attractive. Additionally, strong inflows suggest that some investors opted for MMFs as a cash alternative, maintaining a wait-and-see approach in uncertain market conditions.
2024 marked another record year for ETFs. Net ETF sales soared to €261bn, far surpassing the previous record of €169bn in 2023. ETFs are increasingly the preferred investment vehicle for investors seeking exposure to US and global stock markets.
AIFs saw modest but positive net inflows. Net sales totalled €47bn, slightly below the €54 billion recorded in 2023.
Unlike UCITS, AIFs follow a different sales pattern due to their distinct investor base. Bond AIFs led net sales with €39bn, followed by multi-asset AIFs at €37bn. In contrast, equity AIFs saw net outflows of €29bn, largely due to continued transitions by Dutch and Danish pension funds from AIF structures to segregated mandates.
In the data for December 2024, EFAMA said net sales of UCITS and AIFs totalled €80bn, down from €95bn in November 2024.
UCITS recorded net inflows of €78bn, compared to €82bn in November 2024.
Long-term UCITS (UCITS excluding money market funds) recorded €64bn of net sales, up from €33bn in November 2024. Of these, ETF UCITS saw net inflows of €32bn, slightly higher than the €31bn recorded in November.
Equity funds registered net inflows of €41bn, up from €20bn in November 2024 while net sales of bond funds amounted to €22bn, compared to €17bn in November 2024.
Multi-asset funds recorded net outflows of €0.3bn, compared to net outflows of €5bn in November 2024.
UCITS money market funds attracted net inflows of €14bn, down from €49bn in November 2024.
AIFs recorded net inflows of €2bn, compared to €12bn in November 2024.
Total net assets of UCITS and AIFs decreased slightly by 0.01% to €23.5trn.
