Worldwide funds net sales exceeded €1 trillion in Q4

The European Fund and Asset Management Association (EFAMA) has published its International Quarterly Statistical Release on the worldwide investment fund industry, showing that net sales of worldwide funds exceeded €1 trillion in fourth quarter of 2021.

Worldwide long-term funds recorded net inflows of €753 billion, up from €683 billion in Q3 2021, with the United States accounting for the highest net sales of the quarter with €256 billion, followed by the Asia-Pacific region (€184 billion) and Europe (€169 billion).

Equity funds attracted the largest net sales with €271 billion, mainly due to strong net inflows in the United States (€147 billion).

EFAMA Senior Economist Thomas Tilley said: “Net sales of worldwide investment funds exceeded the €1 trillion mark again in Q4 2021, thanks to solid net sales of long-term funds and a rebound in the demand for MMFs.

“The increased demand for MMFs can be interpreted as a rise in risk aversion among investors at the end of last year.”

MMFs are money market funds — open ended funds that invest in highly liquid short term debt securities.

Net sales of bond funds remained strong at €206 billion, despite net outflows in Europe (€15 billion). This was due to high demand in China (€96 billion) and the United States (€92 billion).

Multi-asset funds recorded robust net inflows of €168 billion, compared to €166 billion in Q3 2021. Europe accounted for €71 billion of those net sales, followed by Canada €41 billion.

Worldwide money market funds recorded net inflows of €270 billion, compared to €19 billion in Q3 2021.

Net sales of MMFs reversed course in Europe, resulting in net inflows of €92 billion in Q4 2021, compared to net outflows of €10 billion in Q3 2021.

In the United States, MMFs recorded net sales of €187 billion, compared to €8 billion in Q3 2021.

In China, traditionally a strong MMF market, net flows turned negative (€0.5 billion).

 

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