Investment fund inflows worldwide plunge

PlungeWorldwide net inflows into investment funds plunged by more than half to €109 billion in the second quarter from €320 billion in the same quarter in 2012.

The European Fund and Asset Management Association (Efama), which compiled the numbers, says there was “a sharp reduction” in net inflows to equity and bond funds.

Equity funds, which account for 38% of investment fund assets, attracted €28 billion of new money, down from €109 billion in the previous quarter.

Bond funds, which account for 23%, also saw significantly lower inflows compared on a quarter-to-quarter basis. They took in €31 billion, down from €143 billion, while balanced funds took in €57 billion, down from €74 billion.

Investment fund assets worldwide decreased 3.5% and stood at €22.94 trillion at the end of June. In dollar terms, they decreased 1.5% to $30 trillion.

Long-term funds, a category that excludes money market funds, attracted €139 billion, down from a record of €402 billion registered in the previous quarter.

Money market funds saw further outflows of €84 billion, compared with outflows of €82 billion in the quarter last year. Europe alone accounted for €53 billion, while money market funds in the US fared better with outflows of €9 billion.

With 50.2%, the US remains the largest market for investment funds, followed by Europe (28.3%), Brazil (5.3%), Australia (5.2%), Canada (3.7%), Japan (3.4%), China (1.3%), Korea (0.9%), South Africa (0.5%) and India (0.4%).

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