Investment fund assets worldwide increased by 2.7 per cent during the second quarter to stand at EUR21.42trn at end June 2012, according to the European Fund and Asset Management Association (EFAMA).
In US dollar terms, worldwide investment fund assets decreased 3.2 per cent during the quarter to USD26.96trn. This difference reflects the appreciation of the US dollar vis-à-vis the euro during the quarter.
Total net inflows into investment funds during the quarter amounted to EUR99bn, down from EUR193bn in the previous quarter. This decrease can be attributed to decreased net inflows into bond and balanced funds.
Net inflows to long-term funds (all funds excluding money market funds) decreased during the quarter to EUR141bn, from EUR248bn in the first quarter.
Bond funds continued to enjoy strong net inflows (EUR121bn), albeit down compared to the first quarter (EUR169bn).
Equity funds recorded the fourth consecutive quarter of net outflows registering net withdrawals of EUR14bn, up from EUR6bn of net outflows in the first quarter.
Balanced/mixed funds registered a sharp decrease in net sales to EUR2bn, down from EUR44bn in the previous quarter.
Money market funds experienced reduced net outflows during the second quarter of EUR42bn, compared to EUR55bn in the first quarter of 2012. The US registered reduced net withdrawals of EUR53bn during the quarter, compared to EUR83bn in the first quarter. Europe registered net outflows of EUR1bn, compared to net inflows of EUR22bn in the previous quarter.
At the end of the second quarter of 2012, assets of equity funds represented 37 per cent and bond funds represented 24 per cent of all investment fund assets worldwide. The asset share of money market funds was 17 per cent and the asset share of balanced/mixed funds was 10 per cent.
The market share of the ten largest countries/regions in the world market were the US (49.5 per cent), Europe (27.8 per cent), Australia (5.7 per cent), Brazil (5.6 per cent), Japan (3.7 per cent), Canada (3.6 per cent), China (1.4 per cent), Rep. of Korea (0.9 per cent), South Africa (0.5 per cent) and India (0.4 per cent).