Monday, June 23, 2014

23/6/2014: Euro Area Investment Funds Stats: April 2014

ECB has released April 2014 data on Investment Funds flows in the Euro Area. The release is available here:

From the top-line:

  1. In April, the amount outstanding of shares/units issued by euro area investment funds (ex-money market funds) was €68 billion higher than in March 2014.
  2. In terms of the breakdown by investment policy, the annual growth rate of shares/units issued by bond funds was 4.0% in April 2014. Transactions in shares/units issued by bond funds amounted to €15 billion in April 2014. The annual growth rate and monthly transactions of equity funds were 7.3% and €21 billion respectively in April 2014. For mixed funds, the corresponding figures were 9.1% and €13 billion.
  3. The kicker is in comparing growth rates in April 2013 against growth rates in April 2014. These are shown in the chart below:

The basic point is that growth is slower (transactions on buy side are smaller) and this is true for all funds, except Equity Funds. This change comes on foot of February-March 2014 when transactions were larger than in the same period of 2013.

So we have alleged economic recovery associated with slower growth in investment funds activity. Not a reason to worry, yet, but certainly a reason to ask if the recovery has been already priced in by the markets?..

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