New statistics from the European Fund and Asset Management Association (EFAMA) indicate net assets within Europe saw a shallower decline than those in the US over the third quarter of last year.
Figures released as part of the trade body’s International Quarterly Statistics show that, while net assets within Europe fell 0.6% compared with Q2 2023, there was a much-steeper US decline of 2.3%. EFAMA also noted worldwide long-term funds recorded net inflows of €98bn, compared with €180bn the previous quarter. The Asia-Pacific region experienced the highest net inflows (€115bn). Net sales were more subdued in the US (€10bn) and Europe (€3bn).
Bernard Delbecque, senior director for economics and research at EFAMA, said: “Net sales of long-term funds remained positive in Q3 2023, mainly thanks to strong net inflows into equity funds in China and Japan. On the other hand, investors in the US and Europe took a more conservative approach, mostly favouring money market funds and bond funds.”
Looking at the worldwide distribution of investment fund net assets at the end of Q3 2023, the US held the largest share in the world market, with 49.5%. Europe followed in second place with a market share of 29.7%. This was followed by China (4.8%), Australia (3.5%), Brazil (3.5%), Canada (3.1%), Japan (3%), Republic of Korea (1%), India (0.8%), and South Africa (0.3%).
EFAMA said that Europe saw net inflows of €42bn, which it attributed to positive net sales in Ireland of €50bn and Germany of €15bn. Meanwhile, Luxembourg and the UK saw respective net outflows of €34bn and €7bn.
Polish body joins EFAMA
EFAMA’s figures were published in the same week that the Polish Izba Zarzadzajacych Funduszami i Aktywami (IZFiA) announced it would join the association. IZFiA represents the interests of investment fund managers in Poland, supporting the development of the sector, disseminating information about investment funds and improving professional ethics.
“This is an exceptional event for us, opening new perspectives and opportunities for our organisation and the entire investment fund sector in Poland,” said Małgorzata Rusewicz, CEO at IZFiA. “Joining EFAMA is not only a prestigious acknowledgment for our chamber but also an opportunity for active participation on the international stage.”
She added: “Through membership in this renowned organisation, we will have the chance to collaborate and exchange experiences with industry leaders from other European countries. It is a unique opportunity to build stronger relationships, develop joint initiatives, and support innovative solutions for our clients and the entire capital market sector.”
