The latest quarterly report from Efama, the European Fund and Asset Management Association, shows that the global investment fund industry witnessed a slight decrease in net assets, dropping by 0.2 percent in euro terms to 64.33 trillion euro in the third quarter of 2023. This trend was mirrored in US dollar terms with a 2.7 percent decline.
The US and Europe, as the largest fund markets, saw reductions in local currency net assets, 2.3% and 0.6%, respectively. Notably, long-term funds globally experienced a decrease in net sales but remained positive. Worldwide long-term funds recorded net inflows of 98 billion euro, compared to 180 billion in the previous quarter.
The Asia-Pacific region led in net inflows, while sales were more modest in the US and Europe. The Asia-Pacific region experienced the highest net inflows of 115 billion euro. Net sales were more subdued in the United States, at 10 billion euro, and Europe, at 3 billion.
Global equity fund inflows rebound
Equity funds showed a rebound with net inflows, especially in China and Japan, while bond funds and multi-asset funds experienced varied flows. Worldwide equity funds recorded net inflows of 59 billion euro during the third quarter, compared to net outflows of 30 billion the previous quarter.
Money market funds maintained robust net inflows globally, with particularly strong performances in the US and Europe, though China saw net outflows. Worldwide money market funds recorded net inflows of 254 billion euro, down from 288 billion in the second quarter.
Efama research director Bernard Delbecque highlighted the continued positivity in long-term fund sales, driven by strong equity fund inflows in China and Japan. “Investors in the US and Europe took a more conservative approach, mostly favouring money market funds and bond funds,” he said.
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