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EFAMA reports worldwide net asset increases across investment funds

News Team, 17/06/2021

The net assets of worldwide investment funds increased by 7.3 percent, according to the latest data from the European Fund and Asset Management Association (EFAMA).

The organisation has published its latest quarterly international statistics, tracking and analysing trends in worldwide regulated open-ended fund assets and flows for Q1 2021.

Its report revealed that there has been a strong increase in the net assets of worldwide investment funds. As a consequence, the largest markets, the United States and Europe, each registered net asset growth of 4.5 percent. 

Meanwhile, net inflows of long-term funds also increased. 

Worldwide, long-term funds recorded net inflows of EUR 807 billion, up from EUR 584 billion in Q4 2020. The United States accounted for the highest net sales of the quarter (EUR 445 billion), followed by the Asia-Pacific region (EUR 304 billion) and Europe (EUR 198 billion).

Equity funds attracted the largest net sales (EUR 293 billion), due to their continued strong performance in Europe (EUR 133 billion) and a recovery in the United States (EUR 96 billion). Multi-asset funds recorded robust net inflows (EUR 189 billion), up from EUR 122 billion in Q4 2020. China accounted for EUR 89 billion in net sales, followed by Europe (EUR 38 billion) and Canada (EUR 32 billion).

In the fixed income space, the net sales of bond funds remained strong (EUR 265 billion). These solid global net sales were sustained chiefly by high net inflows in the United States (EUR 199 billion).

Money market funds (MMFs) were more of a mixed bag. Worldwide, money market funds recorded net inflows of EUR 218 billion, compared to EUR 75 billion in Q4 2020. However, net sales of MMFs turned negative in Europe (EUR 80 billion), compared to net inflows of EUR 44 billion in Q4 2020. 

There was a more positive picture elswhere, as the the United States, MMFs recorded positive net sales (EUR 136 billion), compared to net outflows of EUR 59 billion in Q4 2020. Overall, China recorded the highest net MMF sales of the quarter, reaching EUR 144 billion.

Commenting on the results, Bernard Delbecque, senior director for Economics and Research attributed the increased asset size and net sales to key macroeconomic factors boosting investor confidence.

He said: “Net sales of worldwide investment funds hit EUR 1 trillion for the first time in a particular quarter, boosted by strengthened investor confidence in the success of the Covid-19 vaccination campaign and the global economic recovery. Net inflows into long-term funds rose even higher than in Q4 2020, mainly thanks to strong net sales of equity funds in Europe and bond funds in the United States.”

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