The European Fund and Asset Management Association (EFAMA) has today published its International Quarterly Statistical Release regarding the developments in the worldwide investment fund industry during the fourth quarter of 2021.
Thomas Tilley, Senior Economist, commented “Net sales of worldwide investment funds exceeded the EUR 1 trillion mark again in Q4 2021, thanks to solid net sales of long-term funds and a rebound in the demand for MMFs. The increased demand for MMFs can be interpreted as a rise in risk aversion among investors at the end of last year.”
The main developments through the quarter are as follows:
- Solid increase in the net assets of worldwide investment funds
- Net assets of worldwide investment funds increased by 6.4% in euro terms and 3.9% in dollar terms.
- The largest markets, the United States and Europe, registered a net asset growth of 5% (in dollar terms) and 4.9% (in euro terms), respectively.
Worldwide net fund assets grew briskly over the quarter, pushed up by the good performance of financial markets.
- Net inflows of long-term funds climbed higher
- Worldwide long-term funds recorded net inflows of EUR 753 billion, up from EUR 683 billion in Q3 2021. The United States accounted for the highest net sales of the quarter (EUR 256 billion), followed by the Asia-Pacific region (EUR 184 billion) and Europe (EUR 169 billion).
- Equity funds attracted the largest net sales (EUR 271 billion), mainly due to strong net inflows in the United States (EUR 147 billion).
- Net sales of bond funds remained strong (EUR 206 billion), despite net outflows in Europe (EUR 15 billion). This was due to high demand in China (EUR 96 billion) and the United States (EUR 92 billion).
- Multi-asset funds recorded robust net inflows (EUR 168 billion), compared to EUR 166 billion in Q3 2021. Europe accounted for EUR 71 billion of those net sales, followed by Canada (EUR 41 billion).
Net sales of long-term funds rose across most regions, as investors ended the year on a high note.
- Net sales of money market funds rose again
- Worldwide money market funds (MMFs) recorded net inflows of EUR 270 billion, compared to EUR 19 billion in Q3 2021.
- Net sales of MMFs reversed course in Europe, resulting in net inflows of EUR 92 billion in Q4 2021, compared to net outflows of EUR 10 billion in Q3 2021.
- In the United States, MMFs recorded net sales of EUR 187 billion, compared to EUR 8 billion in Q3 2021.
- In China, traditionally a strong MMF market, net flows turned negative (EUR 0.5 billion).
Net sales of worldwide MMFs increased markedly in Q4 2021, driven by strong net inflows in the United States and Europe.
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About the EFAMA Quarterly International Statistical Releases:
The EFAMA Worldwide Investment Fund Assets and Flows quarterly release focuses on net assets and net sales of worldwide investment funds, whilst also presenting a commentary on the trends in the industry during the quarter. The report contains data on the largest domiciles of investment funds around the globe and the position of Europe in the worldwide context. The report contains statistics from the following 46 countries: Argentina, Brazil, Canada, Chile, Costa Rica, Mexico, United States, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Lichtenstein, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, Australia, China, India, Japan, Republic of Korea, New Zealand, Pakistan, Philippines, Taiwan, and South Africa.
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