Investment fund assets worldwide stood at 18.48 trillion at the end December 2010, an increase of 6.5% on the 17.4 trillion recorded at the end of September 2010, according to the latest quarterly international statistical release published today by the European Fund and Asset Management Association (EFAMA).
Total inflows into investment funds remained strong in the Q4 amounting to 165 billion, compared to 195 billion in the previous quarter. A decrease in net inflows into bond funds from 128 billion to 23 billion and an increase in net outflows from money market funds explained much of this development.
Net inflows to long-term funds (all funds excluding money market funds) remained relatively stable at 198 billion, compared to net inflows of 208 billion in the previous quarter.
Significantly reduced net inflows into bond funds were largely offset by a steep increase in inflows into equity funds during the quarter in both the United States and Europe. Equity funds recorded net inflows of 68 billion during the quarter, considerably higher than the outflows of 16 billion witnessed in the previous quarter.
Net outflows from money market funds increased slightly to 33 billion in the fourth quarter from 13 billion in the third quarter. Money market funds in Europe saw an increase in net withdrawals during the quarter; however, the United States recorded inflows into money market funds for the first time since 2008.
At the end of 2010, assets of equity funds represented 40% and bond funds represented 20% of all investment fund assets worldwide. The asset share of money market funds was 18% and the asset share of balanced/mixed funds was 10%.
Taking into account non-UCITS, the market share of Europe in the world market reached 36.1% at end December 2010, and that of the United States 42.9%. Excluding non-UCITS, the share of Europe and the United States reached 29.6% and 47.2%, respectively.
(LB)