27/01/2011
By Matt Ritchie
The latest quarterly international statistical release from the European Fund and Asset Management Association (EFAMA) shows investment fund assets worldwide stood at €17.36 trillion at the end of September 2010, down slightly on the previous quarter’s €17.5tr.
However, in US dollar terms worldwide investment fund assets increased 10.5% during the quarter, on account of appreciation of the Euro versus the greenback.
Total inflows into investment funds amounted to €156bn during the third quarter of 2010, the highest level recorded since the first quarter of 2008. In a statement announcing the report, EFAMA attributed the increase to reduced net withdrawals from money market funds and continued large inflows into bond funds.
Net inflows to long-term funds, that is all funds excluding money market funds, increased to €190bn in the third quarter. This represented a slight increase on the €180bn of inflows recorded in the previous quarter.
“An increase in net inflows into bond funds from €83bn to €128bn explained much of this development. This happened against the backdrop of a rise in net outflows from equity funds in the United States to €24bn and a turnover in the flows into equity funds in Europe from net withdrawals of €12bn in the second quarter to net inflows of €4bn in the third quarter,” EFAMA said.
Net outflows from money market funds reduced from €194bn in the second quarter to €34bn in the third quarter. The decline was observed in Europe as well as in the US.
Assets of equity funds represented 40% and bond funds represented 22% of all investment fund assets worldwide at the end of the third quarter. The asset share of money market funds was 19% and the asset share of balanced/mixed funds was 11%.
Taking into account non-UCITS, the market share of Europe in the world investment fund market reached 37.5% at the end of September, and that of the US 43.0%. Excluding non-UCITS, the share of Europe and the US reached 30.9% and 47.5% respectively.
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