Net assets of worldwide investment funds decreased by 2.5 percent in the first quarter as the decline in the United States and Europe was only partly offset by net inflows in the Asia-Pacific region, according to the latest International Statistical Release published by the European Fund and Asset Management Association, known as Efama. Bond and money market saw strong net outflows during the first three months, although China bucked the with rising inflows for money market funds.
The largest markets, the United States and Europe, registered a net asset decline of 5.5 percent and 4.5 percent, respectively. Europe and the United States registered net outflows of 69 billion and EUR 54 billion, respectively. The Asia-Pacific region accounted for the bulk of the net inflows, 172 billion euro.
Long-term funds recorded net inflows of 282 billion euro in the first quarter, compared to 753 billion in the fourth quarter of 2021, Efama said.
“Despite the outbreak of the war in Ukraine and new lockdown measures in China, equity and multi-asset funds continued to attract net inflows in Q1 2022, thanks to a very good start of the year. On the other hand, concerns about rising inflation and monetary policy hit bond funds,” said Thomas Tilley, Efama’s senior economist.
Bond and money market funds lead outflows
Bond funds registered net outflows of 50 billion euro, compared to 206 billion in inflows for the fourth quarter. The United States and Europe recorded net outflows of 39 billion and 38 billion euro, respectively, whereas China and Brazil saw net inflows of 17 billion euro each.
Money market funds registered net outflows of 188 billion euro, reversing 270 billion in net net inflows of 270 billion reported for the previous quarter. Net sales of money market funds turned negative in the United States and Europe to total 144 billion and 124 billion euro, respectively. China, traditionally a strong money market fund market, was the exception with net inflows rising to 69 billion in the first quarter.
Equity funds inflows down in Q1
Equity funds attracted net sales of 185 billion euro in the first three months of this year, compared to 271 billion euro in the fourth quarter. This was mainly thanks to strong net sales of 117 billion euro in the United States and 27 billion euro in Japan.
Multi-asset funds recorded net inflows of 90 billion euro, down from 168 billion in the fourth quarter. Europe accounted for the bulk of net inflows, 77 billion euro, followed by Canada, with 15 billion euro.
Efama’s quarterly release focuses on net assets and net sales of worldwide investment funds. The report contains data on the largest domiciles of investment funds around the globe and the position of Europe in the worldwide context and 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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