Investment funds increased their assets in July by 1% to over EUR 3,200 million and are now around EUR 335,000 million.
For the year as a whole, the assets of investment funds increased by 29,000 million euros, or 9.4%, compared to the end of 2022, according to data from the Association of Collective Investment Schemes and Pension Funds (Inverco).
The increase in assets in July was due to both the positive returns in the financial markets and the new inflows recorded that month.
In July, virtually all investment professions saw an increase in their assets, with bond funds making the largest gains, around €1,500 million, thanks both to the new inflows and the returns associated with the rate hike.
International equity funds also recorded significant growth in their assets (1,200 million euros) thanks to revaluations due to the market effect in their portfolios and new inflows into these sectors.
Increasing target return mutual funds and money funds
In addition, the target return funds and money funds together recorded an increase in assets of 773 million euros, which was almost entirely due to the net subscriptions in these professions.
On the contrary, the global funds were the ones that suffered the biggest setbacks in their assets, with 273 million euros, penalized by the repayments in this investment branch.
Index funds and mixed bond funds also saw their assets fall, with the former being stronger at €208 million and €15 million respectively, reflecting redemptions in both sectors.
Despite the minor corrections in valuations in mid-July, the remarkable behavior of the variable-income financial markets has made it possible to offer additional returns to participants in mutual funds.
Mutual funds contribute more than 4.5% to their participants’ profitability so far this year, with particular intensity in variable income funds, 15% in national variable income funds and 12.6% in international equity funds, while index funds are characterized by returns of around 16% off.