Investment fund assets down in Q1 2011 - EFAMA 04 August 2011Brussels Reporter: Anna Reitman
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Investment fund assets worldwide were at €19.5 trillion in the first quarter this year, down slightly from £19.9 trillion in the previous quarter.
Net inflows were down over 38 per cent to €102 billion, largely on the back of increased net withdrawals from money market funds (MMFs), according to the European Fund and Asset Management Association (EFAMA). Net outflows from MMFs, with asset share of 18 per cent, sharply increased to €74 billion in the first quarter, compared to £33 billion in the previous quarter.
In the US, MMFs reversed direction with net outflows of €57 billion, "considerably lower" than the net inflows of €4 billion in the previous quarter. But Europe saw net outflows slow, to €9 billion compared to €41 billion.
Taking MMFs out of the equation, net inflows of all funds slid just over 11 per cent, according to EFAMA figures.
Equity funds saw net inflows of €45 billion, still down from €68 billion the quarter previous and represented 40 per cent of funds. Bonds increased modestly, to €42 billion as did mixed/balanced funds, to €33 billion. Including non-UCITS funds, Europe's global market share reached just about 37 per cent at the end of the first quarter, with the US at just over 42 per cent.
The reduction of net inflows into long-term funds in Europe - from €67 billion to €39 billion quarter on quarter - reflects renewed tension in stock and sovereign debt markets.
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