DOWNLOAD CALASTONE'S LATEST GLOBAL FUND FLOWS REPORT: INVESTOR CONFIDENCE RETURNS AND ESG GOLD RUSH BOOMS
Global Funds Industry – Leaping Ahead
- Global AUM now a quarter more than pre-pandemic peak at $68.3 trillion
- Rising asset prices and inflows have driven the increase
- US and Chinese funds markets have been major growth drivers
Transaction volumes soar
- Investors are trading more actively – volumes on Calastone’s network jumped by two fifths in 2021 to $1.84 trillion
- Equity fund volumes are the largest and rose by a third in 2021
- Fixed income fund volumes rose more slowly after a very busy 2020
Net fund flows – confidence and cash
- Household saving soared in the pandemic – some of this cash headed into funds
- Net inflows jumped 140% in 2021 to $151bn
- Equity funds and mixed assets took two thirds of the new cash
- Investors around the world showed similar patterns on equities but differed on real estate
- Risk aversion increased throughout the year – evidenced by smaller companies, technology funds and value strategies
Spotlight – the ESG boom
- ESG funds took $3 in every $5 of equity fund inflows in 2021
- Inflows of $32.1bn were three times larger than 2020 and 100 times larger than 2019
- Investors in the UK and Europe led the charge, but Australians and Asians were further behind
Active funds – benefiting from ESG
- Active funds saw inflows of $40.4bn in 2021, compared to $12.5bn for passive funds
- Active funds dominate the ESG market
- Two thirds of active-fund inflows in 2021 were driven by ESG
- Even without ESG, active funds beat passives in 2021 – related to concerns over stock valuations
Cross-border flows – internationalisation
- Trade volumes crossing borders rose 46% compared to 36% for domestic flows
- Luxembourg and Ireland remain the main beneficiaries of cross-border flows