Net Asset Value of OPCVMs Continues to Rise
We're back with the monthly net asset value figures for OPCVMs (Open-Ended Investment Companies). Nothing new compared to previous months: the global net asset value has increased by €93 billion to €6,414.2 billion as of the end of May 2024. The positive aspect is that this improvement comes from all categories: +€63.6 billion for bond OPCVMs, €29 billion for mixed OPCVMs, and +€0.3 billion for equity OPCVMs.
Since the beginning of the year, the progression has been established at €626.8 billion, thanks to bond vehicles that have achieved a net collection of €596.8 billion. The contribution of other types of funds was lower, with €28.8 billion for mixed OPCVMs and €1.2 billion for equity OPCVMs.
Following these movements is particularly important for financial market players. While the accumulation of resources over the past two months is due to a good dividend season, the stock market does not currently offer many short-term opportunities, encouraging investors to place their money in collective investment schemes. This means that if interesting opportunities arise, the resources are there to take advantage of them.
This also presents an opportunity for bond issuers who can benefit from the abundance of resources. This concerns the State, which still has two tranches of its 2024 national bond issue. It's also valid for those interested in an IPO, even if current interest rates are not favorable. There's also the possibility of obtaining treasury bills for those with punctual financial needs. A 10% rate, for example, would be attractive as it's cheaper than factoring or overdrafts.
The question is whether the net asset value will reach €7,000 billion by the end of the year. We don't think so, as it would require maintaining a high collection rate, which is not easy. The only possibility is a downward revision of the key interest rate, which would encourage money residing in term deposit accounts and savings books to seek higher returns in these vehicles. Since we rule out this scenario, the most likely outcome would be to end the year with a total net asset value of around €6,700 billion. Such a figure would be a huge success, as ending the exercise with nearly €1,000 billion in collections would be an outperformance.
