Bond funds saw record inflows in Q1 2024, according to EFAMA’s International Quarterly Statistical Release, reaching their highest levels since 2004.
Bond funds inflows were up from €137 billion to €340 billion worldwide for the first quarter, with the US seeing net sales of €170 billion and Europe recording €29 billion. This trend was the result of investors predicting lower interest rates as inflation slows and central banks pause consecutive rate hikes, according to Bernard Delbecque, senior director for economics and research at EFAMA.
Overall, net assets of worldwide investment funds reached €69 trillion (USD 75 trillion) in Q1 2024; up by 2.9% in euro terms and 0.7% in USD terms from the previous quarter. Measured in local currency, net assets grew by 6% in the US and by 4.5% in Europe.
Long-term funds reported €497 billion in net inflows globally over the quarter, up from Q4 2023’s €312 billion. The US saw the highest net inflows (€222 billion), followed by APAC with €149 billion and Europe with €87 billion.
For equity funds, global net income was up by 12% quarter-on quarter to €193 billion in Q1 2024. On a country-by-country basis, the US led with €84 billion in net sales. China and Japan followed with €44 billion and €38 billion respectively.
Europe saw a significant improvement in this space, recovering from €6 billion in net outflows in Q4 2023 to reach €4 billion in inflows over the quarter.
Record net outflows in multi-asset funds continued over the quarter – rising from €72 billion to €76 billion QoQ – driven primarily by China (€31 billion) and the US (€29 billion).
Net inflows into worldwide money market funds dropped somewhat quarter on quarter, falling from €333 billion in Q4 2023 to €256 billion in Q1 2024. The US recorded €53 billion, down from €221 billion, while Europe saw a 83% decrease from €121 billion to €21 billion.
In China, however, money market fund inflows rose significantly over the quarter to €155 billion, up from Q4 2023’s €15 billion.
©Markets Media Europe 2024
