Int'l MF assets rise 3.8% to $27.86 trillion in Q1 2013: ICI

India Infoline News Service | Mumbai |

Outflows from money market funds were US$109bn in the first quarter of 2013, reversing most of the US$137bn inflow recorded in the fourth quarter of 2012.

Mutual fund assets worldwide increased 3.8% to US$27.86 trillion at the end of the first quarter of 2013, an all-time high. Worldwide net cash flow to all funds was US$339bn in the first quarter, compared to US$427bn of net inflows in the fourth quarter of 2012. Flows into long-term funds increased to US$447bn in the first quarter, the highest net sales figure for long-term funds ever, from an inflow of US$290bn in the previous quarter. Equity funds worldwide had net inflows of US$144bn in the first quarter, the largest since the fourth quarter of 2006, compared to US$17bn of net inflows in the fourth quarter. Flows into bond funds totaled US$189bn in the first quarter, down from net inflows of US$217bn in the previous quarter. Outflows from money market funds were US$109bn in the first quarter of 2013, reversing most of the US$137bn inflow recorded in the fourth quarter of 2012.

The Investment Company Institute compiles worldwide statistics on behalf of the International Investment Funds Association, an organization of national mutual fund associations. The collection for the first quarter of 2013 contains statistics from 45 countries.

 
The growth rate of total mutual fund assets reported in U.S. dollars was made smaller by U.S. dollar appreciation. For example, on a U.S. dollar–denominated basis, mutual fund assets in Europe increased by 2.4%in the first quarter, compared with an increase of 5.5%on a Euro-denominated basis.

On a U.S. dollar–denominated basis, equity fund assets increased 7.5% to US$11.5 trillion at the end of the first quarter of 2013, and accounted for almost 80% of the US$1.0 trillion quarterly increase in global mutual fund assets. Bond fund assets increased 2.8% in the first quarter to US$7.2 trillion, accounting for 19% of the quarterly increase in global mutual fund assets. Balanced/mixed fund assets rose 4.7% in the first quarter, while money market fund assets fell 2.8%.

 
       
Net cash flows into mutual funds worldwide were US$339bn in the first quarter of 2013. Flows into equity funds worldwide were US$144bn in the first quarter, after experiencing US$17bn of net inflows in the fourth quarter of 2012. In the Americas, equity funds recorded inflows of US$80bn in the first quarter versus net outflows of US$20bn in the fourth quarter. European equity funds posted an inflow of US$58bn in the first quarter compared to a US$39bn net inflow in the previous quarter.

Flows into bond funds worldwide weakened slightly to US$189bn in the first quarter of 2013 after registering net inflows of US$217bn in the fourth quarter. Bond funds reported US$112bn of net inflows in the Americas and US$58bn in Europe during the first quarter. In the Asia and Pacific region, bond funds recorded net inflows of US$19bn in the first quarter compared with net inflows of US$37bn in the fourth quarter.

Inflows from balanced/mixed funds worldwide totaled US$98bn in the first quarter of 2013, compared with US$43bn of net inflows in the fourth quarter of 2012. Inflows were recorded into balanced/mixed funds of US$49bn in the Americas and USUS$47bn in Europe during the first quarter.

Money market funds worldwide experienced a net outflow of USUS$109bn in the first quarter of 2013 after recording a net inflow of USUS$137bn in the fourth quarter of 2012. The global outflow from money market funds in the first quarter was driven predominately by outflows of USUS$95bn in the Americas, while Europe registered outflows of less than USUS$3bn in the first quarter.

NET SALES OF MUTUAL FUNDS WORLDWIDE
(billions of U.S. dollars)

2011 2012 2013
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
All Funds 109 -170 84 193 111 181 427 339
  Long Term 194 -107 -13 274 150 195 290 447
  Equity 24 -108 -71 -9 -18 -57 17 144
  Bond 100 10 67 215 163 194 217 189
  Balanced/Mixed 60 -20 -2 57 2 49 43 98
  Other 10 10 -7 10 3 8 12 16
  Money Market -85 -63 97 -81 -39 -14 137 -109

At the end of the first quarter of 2013, 41% of worldwide mutual fund assets were held in equity funds. The asset share of bond funds was 26% and the asset share of balanced/mixed funds was 12%. Money market fund assets represented 17% of the worldwide total. 


   


By region, 57% of worldwide assets were in the Americas in the first quarter of 2013, 30% were in Europe, and 13% were in Africa and the Asia and Pacific region.


 

The number of mutual funds worldwide stood at 73,914 at the end of the first quarter of 2013. By type of fund, 38% were equity funds, 24% were balanced/mixed funds, 18% were bond funds, and 4% were money market funds. 




Note: Other/unclassified includes total funds in Ireland.
 

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