Global investment fund assets reach high

Global investment fund assets reach high

Worldwide long-term funds had net inflows of €888bn ($1.2trn) last year, according to Q4 2013 results from the European Fund and Asset Management Association (Efama).

Investment fund assets stood at a new all-time high of €23.79trn, reflecting growth of 1.8% during the fourth quarter and 7.3% since the end of 2012. In US dollar terms, worldwide investment fund assets totalled $32.81trn.

Worldwide net cash inflows increased to €229bn, up from €182bn in the third quarter. This increase was attributable to strong net inflows into long term funds (all funds excluding money market funds), which increased by €193bn. Long term funds registered increased net inflows on both sides of the Atlantic.

Equity funds attracted a strong increase in net inflows to €107bn, up from €61bn in the third quarter. Bond funds experienced a second quarter of net outflows totalling €11bn (albeit lower than the net outflows of €37bn in the previous quarter), while balanced funds registered a rise in net inflows to €52bn.

Money market funds registered net inflows of €36bn compared to €81bn in Q3 2013, which was largely attributable to positive net sales in the US. Europe registered net outflows during the quarter.

Worldwide investment funds attracted net sales of €839bn last year, up from €828bn in 2012. Assets of equity funds represented 40% (2012 – 37%) and bond funds 22% (2012 – 24%) of all investment fund assets worldwide. Of the remaining assets, money market funds represented 15% and the asset share of balanced/mixed funds was 11%.

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