Five European countries were among the top 10 largest fund domiciles in the world (after the United States, which accounts for 52% of market share). Luxembourg is in second place. Photo: Shutterstock

Five European countries were among the top 10 largest fund domiciles in the world (after the United States, which accounts for 52% of market share). Luxembourg is in second place. Photo: Shutterstock

Net assets of worldwide investment funds increased by 2% in euro terms in Q3 2024, said the European Fund and Asset Management Association, bringing these assets to €72trn as of the end of September 2024. Luxembourg, the world’s second-largest fund domicile, accounted for 7.9% of fund assets.

The European Fund and Asset Management Association (Efama) on 17 December issued its international quarterly .

“Net sales of equity funds strengthened in Q3 2024, driven by investor confidence in the global economy, particularly in Asia. At the same time, uncertainty surrounding the US election spurred increased demand for money market funds, especially in the United States and Europe,” said Bernard Delbecque, senior director for economics and research at Efama, commenting on the quarterly figures.

Here are a few takeaways from the report.

€72trn

Worldwide regulated open-end fund assets increased by 2% in euro terms, said the Brussels-based industry association, with assets reaching €72trn at the end of September 2024.

Increase in every fund category

“On a euro-denominated basis, worldwide equity fund assets increased by 2.6%, reaching €32.8trn at the end of Q3 2024,” said Efama. “Bond fund assets rose by 2%, totalling €13.2trn. Multi-asset funds recorded growth of 1.2%, reaching €10.6trn. Money market funds (MMFs) grew slightly by 0.8% to reach €10trn. Real estate funds and other funds also registered increases in net assets of 0.7% and 2.7%, respectively. Every fund category saw an increase in net assets during the quarter.”

At the end of the third quarter, equity funds made up almost half (45.6%) of worldwide regulated-open end fund net assets.

7.9% for Luxembourg

Five European countries were among the top 10 largest fund domiciles in the world (after the United States, which accounts for 52% of market share). Luxembourg has 7.9% of worldwide investment fund assets). Ireland, often seen as a competitor of the grand duchy, comes in third place with 6.5% of market share as of the end of Q3.

Worldwide net sales of funds amounted to €825bn in the third quarter, up from €751bn the previous quarter. “In Q3 2024, all major regions continued to experience net inflows, following a similar trend as in Q2 2024,” said Efama. “Europe recorded net inflows of €182bn, up from €151bn in Q2 2024. Net inflows were primarily driven by Ireland (€134bn). Most European countries saw positive inflows over the quarter, except for the UK, which experienced significant net outflows of €16bn, and Germany, which recorded modest outflows of €1bn.”

Zoom into Luxembourg

As of 30 September 2024, Luxembourg funds’ total net assets stood at €5.659trn. Ireland was around one trillion behind, with €4.676trn in net assets.

But Irish ETF net assets are more than twice as large compared to Luxembourg ETF net assets. Luxembourg’s minister Gilles Roth (CSV) in July 2024 , that the subscription tax for actively managed ETFs would be abolished starting from 1 January 2025. “” that will “help to strengthen the competitiveness of the Luxembourg financial centre,” said PWC partner during an interview with Paperjam in July.

Find the full report .

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