October has not been an ordinary month for investment funds. These products have attracted more money than usual, achieving their best month of 2024 in terms of net subscriptions – money inflows minus outflows. The last quarter of the year has begun by breaking not only this record, but The best October in the historical series has been recordedaccording to statistics compiled by Inverco.
The last part of the year is the time when many investors take the opportunity to readjust their portfolios. But it is not usual for the management industry in Spain to receive so many positive flows of money. The funds have raised almost 3,800 million euros in October, already adding more than 23,000 million accumulated in the year. This figure is higher than what they achieved in all of 2023, when 18,362 million entered; That figure was already beaten at the end of last September.
Fixed income has once again garnered the greatest interest from fund participants, despite the fact that debt has not exactly brought joy this October. Bonds, in fact, have suffered their worst month in two years, with falls of more than 3% according to the global debt index that includes Bloomberg due to the fear that central banks will not lower rates as much as they were anticipating. Despite this, fixed income funds recorded net subscriptions worth more than 2.1 billion euros. In the year, there are already more than 18,000 million who attract these products. This makes sense both due to the context of drops in the price of money and due to the conservative profile that characterizes the saver in Spain. The flows are directed, above all, towards short-term assets, as specified by Inverco, although many experts assure that it would now be a good time to extend the duration in the portfolios.
Vehicles that invest in variable income, on the other hand, continue to suffer refunds. This last month the exception is in those on the international stock market, which attract more money than it leaves; Net subscriptions reach 37.9 million, although during the year they still accumulate refunds worth 43 million. Those considered global products are those that suffer the most departures both in the month and in the year.
With record inflows of money in October, the funds are approaching the round figure of 400,000 million euros in assets under management. The industry closes the month with assets of 393,000 million, which represents an increase of almost 45,000 million in 2024, thanks to the flows captured, but also to the revaluation achieved by the majority of investment vehicles.
Savings are clearly accumulated in fixed income products, which have assets of 140,000 million (more than 35% of the total). Although more capital leaves than comes in during the year, the categories of international and global equity funds are the ones that add the most money managed thanks to the large profits that the stock markets will achieve in 2024.
They draw a bearish month
This last month has not been bullish for the main markets as had previously been the case for most of the year. Most stock indices end October negative, and fixed income is not spared from the losses either. However, with the preliminary data published by Inverco this Thursday, investment funds achieve an average return of 0.46%, with all categories below 1.65%.
In the year the average return is 6.22%highlighting index funds. The large stock market references are being difficult to beat this year, and this category achieves average gains of 18.69%.
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