Efama: Money market funds drive up cash inflows in Q3 2014

Increase graphA turnaround in net flows for money market funds boosted worldwide cash inflows to €290 billion in the third quarter of 2014, according to the European Fund and Asset Management Association (Efama).

Worldwide net cash inflows to all funds increased by €38 billion in the third quarter (Q3) of last year, driven mainly by flows of €67 billion into money market funds, compared to outflows of €49 billion from the asset class in the previous quarter.

Efama's latest statistical research also revealed that investment fund assets worldwide increased 6.2% during Q3 of 2014, to stand at €27.24 trillion by the end of September.

However, some funds saw a slow down, with flows into long-term funds decreasing to €223 billion, down from €301 billion in the second quarter, and balanced funds net inflows dropping to €72 billion, from €81 billion in Q2.

Flows into worldwide equity funds halved to €24 billion in the third quarter, and worldwide bond funds also recorded reduced inflows, dropping to €79 billion in Q3 compared to €112 billion in Q2.

At the end of the third quarter, equity fund assets represented 40% and bond funds represented 22% of all investment fund assets worldwide. The asset share for money market funds was 13% and for balanced/mixed funds was 12%.

The research, which contained statistics from 46 countries across the world, also showed that the US held the largest share of the world market at 50.3% at the end of September 2014, followed by Europe at 28.7%, and Australia at 4.9%.

Efama represents around €17 trillion in assets under management, through its 27 member associations and 63 corporate members.

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