EFAMA, The European Funds and Management Association, published a release titled, "Global investment fund flows show a moderate recovery in Q2 2026," as well as their quarterly, "Worldwide Regulated Open-end Fund Assets and Flows Trends in the Second Quarter of 2026." The former tells us, "EFAMA has published its latest International Quarterly Statistical Release for Q2 2026. (Note: For those of you who attended our European Money Fund Symposium in Paris last week, thank you! Mark your calendars for next year in London, Sept. 23-24, 2027!)
The press release states, "Hailin Yang, Senior Data Analyst at EFAMA, comments, "Net assets of global equity funds increased by 15.7% in the second quarter of 2026, with higher net assets recorded across most markets. The broad-based increase was supported by strong equity-market performance, continued investment in artificial intelligence, and improving investor sentiment." We show the following main developments in the worldwide investment fund industry for Q2 2026. (See our Sept. 23 Crane Data News, "ICI Worldwide: MMFs Rise in Q2'26 to Record $13.7 Trillion; U.S. Jumps.")
EFAMA states, "Net assets of worldwide investment funds increased by 10% in euro terms. Net assets of worldwide investment funds rose by 10% in Q2 2026 to EUR 89.7 tn. Measured in U.S. dollars, worldwide investment fund net assets increased by 9%, to USD 102.2 tn. Measured in local currency, net assets in the two largest fund markets, the United States and Europe, increased by 10.3% and 8.3%, respectively."
They explain, "Net sales of global long-term funds increased in Q2 2026 due to strong net inflows into equity funds and bond funds. Worldwide long-term funds attracted net inflows of EUR 708 bn, up from EUR 668 bn in Q1 2026. The United States led with EUR 337 bn. Europe saw net inflows of EUR 221 bn, primarily driven by Ireland and Luxembourg, which recorded net inflows of EUR 133 bn and EUR 49 bn, respectively. The rest of the Americas registered net inflows of EUR 62 bn, with Canada contributing EUR 52 bn. Republic of Korea and China recorded net inflows of EUR 26 bn and EUR 21 bn, respectively."
EFAMA writes, "Equity funds registered net inflows of EUR 124 bn in Q2 2026, down from EUR 179 bn in the previous quarter. The United States recorded the highest net sales at EUR 124 bn. Europe saw net inflows of EUR 48 bn, with Ireland contributing EUR 69 bn, while the UK and the Netherlands experienced net outflows of EUR 25 bn and EUR 11 bn, respectively. Canada followed, recording net inflows of EUR 31 bn. In China, net outflows from equity funds increased to EUR 110 bn in Q2 2026, from EUR 93 bn in the previous quarter. Bond funds continued to attract robust net inflows, totaling EUR 474 bn in Q2 2026, up from EUR 326 bn in the previous quarter. The United States recorded the largest inflows at EUR 240 bn, followed by China at EUR 139 bn. Europe registered net inflows of EUR 94 bn, driven by net inflows from Ireland (EUR 44 bn) and Luxembourg (EUR 16 bn)."
Finally, they add, "Net inflows into worldwide money market funds (MMFs) attracted higher net inflows in Q2 2026. Worldwide MMFs registered net inflows of EUR 178 bn in Q2 2026, up from EUR 165 bn in Q1 2026. The United States recorded net inflows of EUR 113 bn in Q2 2026, compared to EUR 22 bn in Q1 2026. Europe registered net inflows of EUR 43 bn, with Ireland and Luxembourg contributing EUR 34 bn and EUR 11 bn."
In other news, a statement, "Federal Reserve Board requests public comment on two proposals related to establishing a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act," tells us, "The Federal Reserve Board on Thursday requested public comment on two proposals related to establishing a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act."
It says, "The first proposal would require that Board-supervised payment stablecoin issuers fully back their stablecoins with certain permissible reserve assets, such as short-term Treasury bills and certain other high-quality, liquid assets. The proposal would also establish standardized capital requirements to address certain credit and operational risks of payment stablecoin activities, as well as risk management standards, in accordance with the law. Separately, the proposal would introduce rules for Board-supervised firms that safekeep the assets backing payment stablecoins. It would also clarify the permissibility of stablecoin and related activities for Board-supervised banks."
The Fed update adds, "The second proposal would establish a tailored application process for Board-supervised banks applying to issue payment stablecoins. These applicants would be required to submit a business plan and financial information, among other documents. The proposal would also create a process governing appeals, hearings, and final determinations for applications."
