Fund assets higher globally - but sales fall

Global chartsWorldwide investment fund assets increased in the second quarter (Q2) this year in euro terms despite plunging inflows.

Funds under management increased by 2.7% to stand at €21.42 trillion at June 30, though total net inflows were down from €193 billion in Q1 to €99 billion.

The European Fund and Asset Management Association (Efama), which published the figures, said lower flows into bond and balanced funds were behind the decrease, though bond fund flows were still strong at €121 billion compared to €169 billion in the previous quarter.

In US dollar terms, worldwide investment fund assets decreased 3.2% during Q2 to $26.96 trillion. This reflected the appreciation of the US dollar against the euro.

US investors drew out less from money market funds in the period - €53 billion versus €83 billion in Q1 – while Europeans reversed €22 billion of inflows in Q1 to €1 billion of outflows.

Equity funds worldwide saw their fourth consecutive quarter of net outflows with net withdrawals of €14 billion, up from €6 billion of outflows in Q1. Equity funds represented 37% and bond funds represented 24% of all investment fund assets worldwide.

Yesterday the Investment Management Association (IMA) said the UK saw net retail sales of £23 million (€18 billion) in August – the lowest since October 2008. Again, fixed income saw the best sales.

However, Richard Saunders, IMA chief executive, said: “…but it’s only one month. Taking the first eight months of the year, net retail sales of £9.1 billion are down on last year but still healthy.”

©2012 funds europe