Efama’s latest Quarterly Statistical Release has revealed significant trends in the investment fund market for the third quarter of 2023.
Key findings include changes in net assets and varied inflow patterns across different fund types.
The net assets of Ucits and AIFs have seen a slight decrease of 0.6%, amounting to €19.7 trillion. Ucits funds registered a notable increase in net inflows, reaching €29 billion, a significant rise from €1 billion in the second quarter of 2023.
Net inflows led this growth in bond funds and money market funds (MMFs), although equity and multi-asset funds experienced net outflows.
MMFs, in particular, benefited substantially from the high-interest rate environment, recording net inflows of €38 billion, a steep increase from €6 billion in the previous quarter.
Additionally, net sales of exchange-traded funds (ETFs) climbed to €36 billion from €33 billion in Q2. On the other hand, AIFs experienced lower net inflows of €6 billion, down from €44 billion in Q2.
While equity funds saw net outflows, bond and multi-asset funds continued to attract net inflows, albeit at a reduced pace compared to Q2.
MMFs within AIFs recorded lower net inflows, and real estate funds also saw a decrease in net inflows.
The report also highlighted that SFDR (Sustainable Finance Disclosure Regulation) Article 9 funds, which focus on sustainable investments, continued to attract net inflows for the 10th consecutive quarter, despite a drop in their volume.
Lastly, European retail investor fund purchases remained strong in Q2 2023, totalling €37 billion, indicating continued investor interest in the fund market despite the fluctuating economic environment.
Bernard Delbecque, senior director for economics and research at Efama, commented: “Investors continued to favour bond and money market funds over equity and multi-assets funds last quarter. This can be explained by the current level of interest rates and the persistent volatility in stock markets.
“When investors start anticipating lower interest rates, the demand for equity and multi-asset funds is likely to increase again.”
© 2023 funds europe
