European long-term fund inflows were driven by record bond fund activity in Q3 2025, according to EFAMA statistics.
Net inflows for long-term funds were €236 billion over the quarter, with bond funds net inflows up 146% on Q2, reaching a record €111 billion. Equity funds were up 220% quarter-on-quarter (QoQ) to €64 billion.
Year-on-year, long-term fund inflows were up 184% from €83 billion. While bond fund net inflows have increased 127% over this time, their share of overall inflows has dropped from 59% to 47%.
Thomas Tilley, senior economist at EFAMA, commented, “This surge in bond UCITS likely reflected attractive interest rates and an increased perception of equity risk due to ongoing geopolitical tensions and elevated valuations in certain parts of the stock market.”
UCITS and AIF net inflows were €275 billion, up 94% from Q2’s €142 billion, with net assets up 4.1% to €24.52 trillion. The bulk of these sales were generated by bonds.
Inflows for UCITS ETFs reached €90 billion, and are expected to set a new record at the end of the year.
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