EFAMA has today published its International Quarterly Statistical Release regarding the developments in the worldwide investment fund industry during the second quarter of 2023.
Bernard Delbecque, Senior Director for Economics and Research, commented “After the annus horribilis of 2022, bond funds are back with net sales totaling EUR 345 billion at the global level during the first half of this year. Two factors can explain this recovery: first, expectations that inflation should continue to decline, which would open the door to a more stable interest rate environment and potential capital appreciation, and second, the current high level of interest rates, which gives investors the opportunity to earn decent income.”
The main developments through Q2 2023 are as follows:
- Net assets of worldwide investment funds increased by 3.2% in euro terms thanks to the generally positive performance of financial markets.
- Net assets of worldwide investment funds reached EUR 64.43 trillion in Q2 2023. Measured in US dollar terms, the net assets rose by 3.2% to USD 70 trillion.
- Measured in local currency, net assets in the two largest fund markets, the United States and Europe, increased by 4.3% and 2.0%, respectively.
- Net inflows into Long-term funds further strengthened in Q2 2023 thanks to strong demand for bond funds.
- Worldwide long-term funds recorded net inflows of EUR 149 billion, compared to EUR 123 billion in Q1 2023. The Asia-Pacific region experienced the highest net inflows (EUR 111 billion), followed by the United States (EUR 64 billion), and Europe (EUR 1 billion).
- Global equity funds recorded net outflows of EUR 27 billion, compared to net inflows of EUR 5 billion in Q1 2023. China registered the highest net sales (EUR 32 billion), whereas the bulk net outflows occurred in Europe (EUR 31 billion) and the United States (EUR 11 billion).
- Bond funds maintained their positive trajectory, attracting net inflows of EUR 208 billion, up from EUR 137 billion in Q1 2023. The United States, China and Europe recorded the highest level of net sales (EUR 88 billion, EUR 77 billion, and EUR 44 billion, respectively).
- Multi-asset funds continued to record net outflows of EUR 80 billion. Europe accounted for most of these net outflows (EUR 33 billion), with China and the United States also registering net outflows of EUR 17 billion and EUR 12 billion, respectively.
- Global money market funds suffered a sharp decline in net inflows.
- Worldwide money market funds (MMFs) recorded net inflows of EUR 275 billion, down from EUR 507 billion in Q1 2023.
- Europe's MMFs experienced a decline in net inflows to EUR 8 billion from EUR 11 billion in Q1 2023.
- MMFs in the United States continued to attract net inflows, albeit significantly less than in Q1 (EUR 170 billion compared to EUR 405 billion).
- China saw net inflows of EUR 67 billion, compared to EUR 68 billion in Q1 2023.
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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