Following a very strong 2023, 2024 was another impressive year for risk assets. In a year marked by continued geopolitical tensions in Ukraine and the Middle East, the return of dovish monetary policy in major developed markets, and the election of President Donald Trump, investors continued to deliver: Positive sentiment rose as investors poured €459.6 billion into long-term European-based funds.
Passive funds attract record inflows
December 2024 was the third best month on record for European-based passive long-term funds, with net new subscriptions of €35 billion. Overall, passive fund inflows reached €307.5 billion last year, a new record.
Global stocks fell in December, but ended 2024 up 17.5% (in US dollar terms), marking the second consecutive year of double-digit returns. The market was driven primarily by U.S. mega-cap stocks focused on tech stocks. Equity funds attracted 30.2 billion euros in December and 182.1 billion euros in 2024. The last quarter was particularly strong, with €89.3 billion flowing into the class, the best result since Q2 2021.
Bond strategies performed well as major central banks maintained their hawkish tone in December, largely continuing to ease policy rates. of us federal reserve system It lowered its target interest rate to 4.25% to 4.50% and hinted at two more rate cuts in 2025. In Europe, Bank of England leaves benchmark interest rate unchanged For split decisions, it was 4.75%. vice versa, european central bank The Swiss National Bank lowered deposit rates to 3.0% as concerns about inflation risks faded, while the Swiss National Bank cut its key interest rate to 0.50%, a sharper-than-expected cut. In this context, net inflows into fixed income strategies amounted to EUR 23 billion in December and EUR 336.4 billion in 2024, the second best result for the year on record.
Allocation funds are attracting money again.
The multi-asset strategy ended the quarter in positive territory, posting 4 billion euros in the fourth quarter after 17 months of net redemptions. This is completely Allianz Income and Growth Fundis in the Morningstar category with moderate US dollar allocation and achieved net inflows of €5.6 billion in the last quarter.
Finally, money market funds collected €235.8 billion in 2024, the second best year on record.
Index funds continue to gain market share
In 2024, long-term index funds had inflows of 307.6 billion euros, while actively managed funds had inflows of only 150.5 billion euros. The allocated funds received reimbursement from both sides. At the same time, fixed income funds were able to drive capital into both active and passive products. Last year, long-term passive funds had a positive organic growth rate (OGR) of 10.2%, compared to 1.8% for long-term active products over the same period.
The market share of long-term index funds rose from 26.8% in December 2023 to 29.6% as of December 2024. Including money market funds, the domain of active managers, index funds’ market share rose to 25.6%. From 23.2% 12 months ago.
The purest ESG funds continue to lose money
Net inflows into funds within Article 8 of the SFDR amounted to EUR 23.7 billion in December, the eighth consecutive positive month in terms of flows and the highest monthly performance since December 2022, and the annual performance. The total amount was 148 billion euros. At the same time, funds falling under Article 9 (the “dark green” strategy) decreased by €4 billion, the 15th consecutive month of net outflows.
From an organic growth perspective, the Article 8 fund showed an OGR of 2.8% in 2024. Meanwhile, Article 9 group products recorded an OGR of -6.8% over the same period.
Which asset manager raised the most money?
Below is a detailed look at the 10 fund houses that raised the most and least in Europe in 2024, between passive and active management (excluding money market funds).
Data Notes The numbers in this report were compiled on January 20, 2025 and reflect only those funds that reported net assets by that date. It included approximately 31,300 European-domiciled open-end funds and exchange-traded funds that Morningstar tracks from more than 2,900 fund companies across 36 domiciles. Organic growth rate is the ratio of flows to starting assets.
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