Global assets under management hardly move in July

Global bondsGlobal assets under management did not move significantly in July after investment losses eroded inflows.

Total assets under management were $35.9 trillion (€32.4 trillion), net inflows amounted to $114.9 billion, and losses were $86.7 billion, according to Lipper, a data provider.

Flows into equity funds in July increased the sector’s market share slightly by 0.2 %, while net flows for bond funds caused their market share to fall by the same amount.

All asset types posted negative average returns. Commodity funds were the worst, with an 8.7 % loss due to a further drop in energy prices.

The outlook for the securities market does not give a clear indication about where it is heading, says Otto Christian Kober, Lipper’s global head of methodology.

US macroeconomic data shows little sign of significant improvement, which Kober suggests jars with the anticipated rise in interest rates this year, and money is not finding its way into the real economy.

“The situation is not much different in Europe. It doesn’t look like the [European Central Bank] will raise interest rates any time soon, due to highly indebted southern European countries. For Europe as a whole, the money continues to flow into equity markets, with notable movement into money markets as well.”

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