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Global bond fund inflows surge in Q1

Bond funds globally saw net inflows of €236bn in Q1 2019 compared to net outflows of €59bn in the previous quarter.

Worldwide net cash flow to all funds amounted to €304bn, compared to €118bn in Q4 2018 according to new European Fund and Asset Management Association (Efama) data.

The figures are compiled on behalf of the International Investment Funds Association with statistics from 47 countries. 

Balanced/mixed funds registered net inflows of €23bn, compared to net outflows of €7bn in Q4 2018. Net sales of money market funds amounted to €34bn, down from €72bn last quarter. Equity funds recorded net outflows of €22bn, compared to net inflows of €99bn in Q4 2018.

Overall, the asset of regulated open-ended fund increased by 9.2% to reach €48trn in the first quarter of 2019.

An industry rebounds

Measured in US dollars, worldwide investment fund net assets increased to US$ 53.9trn at the end of the first quarter. This represented an increase of 7.1%, compared to an increase of 6.8% on a Euro-denominated basis.

On a euro-denominated basis, all fund categories recorded net asset growth. Equity fund assets increased 13.1 % to € 20trn. Bond funds rose 6.7% to € 10trn. Balanced/mixed fund assets grew to €8.2trn, an increase of 8.8%. Net assets of money market funds and real estate funds registered increases of 3.2% and 3.6%, respectively.

Some 41.5 % of worldwide net assets were held in equity funds with bond funds making up 20.7 %, balanced/mixed funds 17.1 % and money market funds 11.4 %.

The US and Europe held the largest shares in the world market, with 47.0 % and 32.8 %, respectively. Australia held 3.9%, Brazil 3.6%, China 3.6%, Japan 3.4%, Canada 3.1%, South Korea 1.0%, India 0.6% and South Africa 0.4%.

Luxembourg and Ireland top domiciles

Five European countries ranked among the top ten largest fund domiciles: Luxembourg with 9.1 % of worldwide investment fund assets, Ireland 5.5%, Germany 4.5%, France 3.9% and the United Kingdom 3.4%.

In Europe, long-term funds registered net inflows of €63bn, compared to net outflows of €62bn in Q4 2018. Equity funds recorded net outflows of €38bn, compared to net outflows of €1bn in the previous quarter. Bond funds recorded net inflows of € 80bn, compared to net outflows of €45bn Q4 2018.

Balanced/mixed funds registered net inflows of €8bn, compared to net outflows of €7bn in the previous quarter. Money market funds recorded net outflows of €11bn, compared to net inflows of €20bn in Q4 2018.

In the United States, long-term open-ended funds recorded net inflows of €135bn in Q1 2019, compared to net outflows of €36bn in Q4 2018. Net sales of equity funds decreased from €24bn in Q4 2018 to €3bn in Q1 2019. Bond funds recorded net inflows of €123bn, compared to net outflows of €49bn in the previous quarter.

Balanced/mixed funds registered net inflows of €9bn, compared to net outflows of €13bn in Q4 2018. Money market funds recorded net sales €36bn, down from €150bn in the previous quarter.

Part of the Bonhill Group.