In the first quarter of 2025, management companies experienced a slowdown in the growth of their clients’ asset values. This trend was linked to an outflow of funds from money market exchange-traded unit investment funds (UIFs), which had previously reached record highs in late 2024. Additionally, there was a decline in investments in closed-end funds.
Investors were moving away from money market funds and opting for instruments offering greater diversification with expected yield increases. Notably, investment in open-end UIFs rose for the first time in over 15 months. A significant factor contributing to this increase was a fund strategy that included investments not only in the money market but also in government and corporate bonds.
Despite these shifts, UIFs continued to be the main growth driver within the collective investment market. From January to March 2025, they accounted for nearly three-fourths of growth, with their share of net asset value reaching 64.6%.
Further information can be found in the Review of Key Indicators of Management Companies for Q1 2025.
