Worldwide regulated open-ended fund assets increased by 1.6 per cent to EUR48.8 trillion in the second quarter of 2019 while worldwide net sales of funds amounted to EUR316 billion, according to the latest International Statistical Release from The European Fund and Asset Management Association (EFAMA).
Strong sales of bond funds in response to slower economic growth and a shift in ECB and Federal Reserve monetary policy. Worldwide bond funds recorded net inflows of EUR211 billion in Q2 2019, compared to net inflows of EUR236 billion in Q1 2019 and net outflows of EUR59 billion in Q4 2018. These strong global sales were mostly driven by inflows in the United States (EUR117 billion) and Europe (EUR83 billion).
Persisting net outflows from equity funds in response to trade tensions, global growth worries and stock-market volatility. Worldwide equity funds recorded net outflows of EUR36 billion in Q2 2019, compared to net outflows of EUR22 billion in Q1 2019 and net inflows of EUR99 billion in Q4 2018. Europe and the US registered net outflows in Q2 2019 (EUR33 billion and EUR28 billion, respectively), which were not fully offset by net inflows in Japan (EUR18 billion) and China (EUR8 billion).
Divergent trends in net sales of money market funds. Whereas money market funds attracted EUR107 billion in new money in the United States, Chinese money market funds experienced net outflows of EUR61 billion in response to lower returns and competition from banks’ wealth management products.
Bernard Delbecque (pictured), Senior Director for Economics and Research, says: “Net sales of worldwide investment funds remained steady in the second quarter of 2019, thanks to strong demand for bond funds in a generally declining interest rate environment”.