Strong inflows to bond funds boost net sales of worldwide investment funds
Investment fund assets worldwide increased by 2.5 per cent to EUR21.95trn in the third quarter of 2012, according to The European Fund and Asset Management Association (EFAMA).
In US dollar terms, worldwide investment fund assets increased 5.3 per cent during the quarter to USD28.38trn. This difference reflects the depreciation of the US dollar vis-à-vis the euro during the quarter.
Total worldwide net inflows into investment funds amounted to EUR167bn during the third quarter, up from EUR99bn in the previous quarter. This increase was achieved thanks to stronger net inflows into balanced and bond funds.
Long-term funds (all funds excluding money market funds) registered increased net inflows during the quarter of EUR175bn, up from EUR141bn in the second quarter.
Bond funds continued to enjoy strong net inflows (EUR146bn), up from EUR121bn in the second quarter.
Equity funds recorded the fifth consecutive quarter of net outflows (EUR43bn, up from EUR14bn in the previous quarter).
Balanced/mixed funds registered a large increase in net sales to EUR38bn, compared to EUR2bn in the previous quarter.
Money market funds registered net outflows of EUR9bn, down compared to the second quarter (EUR42bn). The US registered net inflows of EUR29bn during the quarter, marking a turnaround compared to the second quarter when net outflows amounted to EUR53bn. On the other hand, Europe registered net outflows of EUR31bn, up from EUR1bn in the previous quarter.
At the end of the third quarter, assets of equity funds represented 37 per cent and bond funds represented 24 per cent of all investment fund assets worldwide. The asset share of money market funds was 16 per cent and the asset share of balanced/mixed funds was 11 per cent.
The market share of the ten largest countries/regions in the world market were the US (49.3 per cent), Europe (28.1 per cent), Australia (5.7 per cent), Brazil (5.5 per cent), Japan (3.6 per cent), Canada (3.5 per cent), China (1.3 per cent), Rep. of Korea (0.9 per cent), South Africa (0.6 per cent) and India (0.4 per cent).
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