Money market funds suffer large outflows, says Efama

Net outflows from money market funds more than doubled in the first quarter of this year to €294 billion (£244 billion), according to the latest figures published by the European Fund and Asset Management Association (Efama).

In comparison, money market funds suffered outflows of €139 billion in the previous quarter. Last month, data showed they continued to decline, although the monthly drop slowed to €7 billion from €19 billion in the preceding month.

Following the sharp rise in net outflows from money market funds, investment funds globally suffered €45 billion in net outflows. The inflows into long-term funds could not offset the outflows. (article continues below)

Net inflows to long-term funds, or all funds excluding money market funds, rose from €222 billion to €249 billion over the first quarter.

At a sector level, equity funds saw €54 billion, bond funds €122 billion and balanced funds €37 billion in net inflows.

Investment fund assets globally increased by 6.5% in value to €17 trillion at the end of the first quarter. Equity funds assets accounted for 40% of all investment fund assets worldwide. Money market fund assets represented 21% worldwide.

Taking into account non-Ucits funds, Europe’s share of the world market reached 35.9% at the end of March. America’s share was 44.8%. Excluding non-Ucits funds, Europe’s share reached 30.8% and America’s 48.3%.
Efama and the Investment Company Institute compiled the information on behalf of the International Investment Funds Association, an organisation of national investment fund associations. The report covers statistics from 43 countries.