Worldwide investment fund AUM rises

Bond funds drove high fund inflows in the second quarter, with some investors expecting opportunities to gain capital appreciation from bond prices as interest rates come down.

The European Fund and Asset Management Association (Efama) recorded €208 billion of inflows worldwide into fixed income, an increase from €137 billion in Q1.

The US, China and Europe recorded the highest level of net sales – €44 billion in the case of Europe, which was lower than the other two regions.

Bernard Delbecque, senior director for economics and research at Efama, said expectations that inflation would decline was a factor behind the drive for bond funds, as this would “open the door to a more stable interest rate environment and potential capital appreciation”.

For others, the current high level of interest rates, which yield a decent income, was the attraction.

Overall, net assets of worldwide investment funds increased by 3.2% in euro terms – reaching €64.4 trillion, or US$70 trillion.

Broader fund flows for worldwide long-term funds recorded net inflows of €149 billion, compared to €123 billion in Q1 2023. The Asia-Pacific region experienced the highest net inflows (€111 billion), followed by the US (€64 billion) and Europe (€1 billion).

However, global equity funds recorded net outflows of €27 billion, compared to net inflows of EUR 5 billion in Q1 2023. The bulk of net outflows occurred in Europe.

© 2023 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST