Europe-based funds recorded net outflows of €130 billion in Q3 2022 on the back of negative net sales in Luxembourg, the Netherlands, the UK and France, data from EFAMA shows.
The EFAMA Worldwide Investment Fund Assets and Flows quarterly release showed €66 billion in sales in Luxembourg, €33 billion in the Netherlands, €29 billion in the UK and €16 billion in France drove the total outflow.
Conversely, inflows were recorded in Switzerland (€7 billion), Turkey (€3.1 billion), and Spain (€2.9 billion).
In Europe, long-term funds recorded net outflows of €111 billion, compared to net outflows of €71 billion in Q2 2022.
Mainly equity and bond funds registered major net outflows over the quarter.
Equity funds recorded net outflows of €98 billion, compared to net outflows of €59 billion in Q2 2022.
Bond funds were less negatively impacted, with net outflows of €31 billion, compared to net outflows of €56 billion in Q2 2022.
Sentiment towards multi-asset funds was also different, with net outflows of €300 million registered in the quarter, compared to net inflows of €11 billion in Q2 2022.
Europe took second place in the worldwide distribution of investment fund net assets with a market share that dropped below 30% to 29.4%.
The US held the largest share in the world market, with 49%, above China (5.4%), Australia (3.7%), Brazil (3.4%), Canada (3.2%) and Japan (3%).
Five European countries ranked among the top ten largest fund domiciles in the world. Luxembourg held 8.1% of worldwide investment fund assets, followed by Ireland (5.9%), Germany (3.9%), France (3.2%), and the United Kingdom (2.8%).
Worldwide regulated open-end fund assets increased by 0.1% in Euro terms to €62.02tn in Q3 2022.
Measured in local currency, net assets in the two largest fund markets, the US and Europe, fell by 4.8% and 2.6%, respectively.
Bernard Delbecque, senior director for economics and research at EFAMA, said: “Net outflows from bond funds in Europe and the United States slowed down significantly in Q3 2022, confirming the view that the outlook for bond funds has improved in recent months thanks to the rise in bond yields observed since May.”
Net assets of worldwide investment funds remained stable at €62 trillion. Measured in US dollar terms, net assets measured dropped by 6.1% due to the strong appreciation of the US dollar in comparison to the Euro.
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