Worldwide investment fund assets reach all-time high in Q1

graph upInvestment fund assets grew by 13.7% to an all-time high of €37.8 trillion in the first quarter of 2015, according to a report from the European Fund and Asset Management Association (Efama).

Efama found that worldwide net cash inflows also increased, from €495 billion in the fourth quarter of 2014 to €574 billion in the first quarter of 2015. This was due to increased net inflows to equity, bond and balanced/mixed funds.

Long-term funds (all funds excluding money market funds) recorded net inflows of €585 billion during the first quarter, a 54% increase from the previous quarter.

Bond funds posted the greatest increase in net inflows, gathering €173 billion compared to €87 billion in the previous quarter. Equity funds attracted net inflows of €157 billion, up from €138 billion in the fourth quarter, and balanced funds registered a large net inflow of €213 billion.

In contrast, the quarter was less successful for money market funds, which registered net outflows of €12 billion, compared to net inflows of €116 billion in the fourth quarter of 2014.  This was largely down to net outflows of €70 billion in the United States, whereas Europe registered inflows during the quarter.

At the end of the first quarter, assets of equity funds represented 40% of all investment fund assets worldwide, while bond funds represented 21%. Of the remaining assets, money market funds represented 11% and the asset share of balanced/mixed funds was 17%. 

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