Efama confirms 2015 Q3 global fall in fund sales
The European Fund and Asset Management Association (Efama) has published figures confirming that the global fund industry saw a significant decrease in net assets through the third quarter of last year, as equity funds in particular led the rout.
According to data compiled by Efama together with the Investment Company Institute on behalf of the International Investment Funds Association, and covering statistics from 46 countries, the assets of regulatoed open ended funds fell by 5.9% to €34.89trn by the end of the period.
Net cash flows to all funds at €230bn was sharply down on the same period a year earlier – €596bn.
And despite currency fluctuations involving the dollar and euro, the dollar figures follow a similar trend: the data suggests total assets of the same investment funds globally waas $39.1trn at the end of the period, a fall of 5.7%.
Equity funds decreased their assets more than the average. On a euro denomination basis, the decrease was 9.7% to €13.7trn by the end of the quarter. Bond fund assets fell by 4.5% to €7.3trn, while balanced funds saw their assets fall 6.6% to €6.4trn. Money market funds’ assets fell by 5.2% globally to €4.3trn.
These changes meant that at the end of the quarter, equity funds accounted for some 39% of global regulated open ended fund assets, with bond funds on 21%, balanced funds on 18% and money market funds on 12%. Property funds accounted for some 1.1%.
By market share, the US (48.4%) and Europe (33.8%) together accounted for a significant majority of overall assets by domicile. Australia (3.7%), Japan (3.2%) and Canada (3%) made up the remaining top five domiciles.
European countries made up five of the top 10 domiciles: Luxembourg (9.7%), Ireland (5.1%), France (4.8%), Germany (4.8%) and the UK (4%).
Net sales collapse
Of note in the figures is the significant collapse seen through the period in net new fund sales.
The global figure for long term funds was €49bn, compared to €616bn in the same period a year earlier. For, although equity funds saw net flows of €79bn (€121bn in the 2014 period), bond funds saw net outflows of €21bn. Balanced funds saw net outflows of €34bn. Money market funds saw net inflows of €181bn (€67bn in the 2014 period).
In regards to Ucits funds, net inflows over the period were reported as €61bn, which was down from €191bn in the second quarter of 2015.