The assets of investment funds increased by 7,012 million euros at the end of the month of November, which represents an increase of 2.2% compared to last month, reaching 339,000 million, according to push Inverco’s preliminary data published this Friday. The sector’s employers have explained that the main cause of this growth is the “excellent performance” of the financial stock markets, such that, so far in 2023, the volume of investment funds registers an increase greater than 32,000 million euros, 10.5% more than the closing figures for 2022.
In more detail, Inverco has pointed out that the increase in investment funds’ assets in November has occurred mostly thanks to the positive returns recorded in the stock markets (the Ibex 35 ended the month with an increase of 11.5% , its best figure in three years) and has been supported to a lesser extent by the new inflows made by its participants.
Most investment categories have recorded increases in their assets in the eleventh month of the year, although in absolute terms international variable income funds have stood out with an increase in assets of 2,485 million euros (5.1% more in monthly rate ); while fixed income funds continue their good asset performance and this past month they have recorded 2,370 million euros (2.1% more) thanks to new inflows. So far this year, fixed income funds have raised 23.5 billion, which represents a 26% increase in assets compared to the end of 2022.
Along the same lines, the monetary and target profitability funds have, as a whole, registered asset increases in November valued at 1,520 million thanks to net subscriptions in these vocations. It stands out, for its part, that monetary funds practically double (92%) their assets in the year.
On the contrary, the guaranteed funds were the ones that experienced the greatest decreases in their assets with the loss of 325 million euros as a consequence of the guarantee maturities experienced in the month in their variable return component, while the global funds also experienced you step back. os in their assets (20 million euros) due solely to the outflows recorded in the month.
37 months in a row with positive net subscriptions
After the increase in assets this month, investment funds have once again registered positive net deposits worth 120 million euros in November, and have had 37 consecutive months with positive net subscriptions. In the first months of the year, investment funds have accumulated around 17.7 billion euros of positive flows.
Fixed income funds recorded the highest volume of net inflows with 1,750 million, while global funds recorded the highest number of net outflows with 1,498 million.
Profitability continues to grow
The funds experienced a positive average return of 2.04% in November, while all vocations have obtained positive returns, with national equities leading the way (+8.66%), followed by index funds (+8.23%). and international equities (+5.72%). This 2023, investment funds provide a positive average return of 4.86% (in October the figure stood at 2.82%).
The stock market momentum in November, concentrated especially in the second half of the month, has been driven by market sentiment that the cycle of monetary tightening by the main central banks has ended and that the first rate cuts will come later 2024, while inflation will decline and the economic slowdown will be mild.
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