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).