Access Calastone’s latest global fund flows report.
2024 marked a big turning point in global markets as central banks began the long-awaited process of cutting interest rates as inflation in most major economies finally came back under control.
Our latest annual review shows how investors have responded to this and the other big trends of 2024.
Fixed Income
- Investors added a net $52.0bn to bond funds in 2024
- Inflows to bond funds rose in Asia, Europe, the UK and Australia and were at their highest on our six-year record in every territory
- Since 2019 investors have added more cash to bond funds that to all other asset classes combined
Equities
- Soaring stock markets did not translate into dramatic fund inflows in 2024 in many parts of the world – they totalled just $3.5bn across our global network in 2024, though this is a marked improvement on 2022 and 2023
- Record trading volumes and small net inflows indicates lack of consensus as well as switching between fund sectors
- Global and North American funds were the big winners with $18.0bn and $9.0bn inflows respectively
- European funds saw first inflows in six years, but Asia-Pacific and UK funds continued to see significant outflows driven mainly by local investors in both cases
- UK-focused equities suffered the worst net outflows, shedding $13.3bn in 2024
Active v Index-tracking
Equities
- Equity index trackers proved far more attractive to investors everywhere than active funds in 2024 – investors added $17.5bn to passive funds and withdrew $14.0bn from actives
- Most equity fund sectors saw investors favour trackers in 2024 but global and North American ones stood out – these active funds garnered far more inflows than index ones
Fixed Income
- Active fund managers are beating index funds for inflows in fixed income funds – 75% of 2024’s inflows were to actively managed bond funds; active funds have done better longer term too
- Asian and Australian investors are the key buyers of active bond funds
ESG
- Outflows from ESG equity funds slowed in 2024, but this mainly reflects better sentiment to equity funds overall compared to 2023
- $2.9bn was withdrawn from ESG equity funds compared to $6.4bn added to non-ESG counterparts
Property
- Real-estate funds continued to spiral downwards in 2024, shedding $615m in the sixth consecutive year of outflows
Mixed Assets
- Mixed asset funds saw inflows fall to $5.6bn in 2024, their lowest level on our six-year record
- Mixed-asset funds have nevertheless seen more positive fund flows than equities for three consecutive years
Source: Calastone
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