Mutual fund assets increased 4% at the end of Q4FY13

India Infoline News Service | Mumbai |

Inflows into money market funds were US$49bn in the fourth quarter of 2013, somewhat lower than the US$101bn inflow recorded in the third quarter of 2013

Mutual fund assets worldwide increased 4% to US$30.05 trillion, an all-time high, at the end of the fourth quarter of 2013, and rose US$3.2 trillion over the year due primarily to strong capital appreciation in equity and balanced/mixed fund categories. Worldwide net cash flow to all funds was US$252bn in the fourth quarter, compared to US$191bn of net inflows in the third quarter of 2013. Flows into long-term funds increased to US$203bn in the fourth quarter from an inflow of US$90bn in the previous quarter, and long-term mutual funds received a record inflow of US$955bn in 2013. Equity funds worldwide had net inflows of US$145bn in the fourth quarter, up from US$77bn of net inflows in the third quarter. Outflows from bond funds totaled US$15bn in the fourth quarter, down from net outflows of US$55bn in the third quarter. Inflows into money market funds were US$49bn in the fourth quarter of 2013, somewhat lower than the US$101bn inflow recorded in the third quarter of 2013.


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 fourth quarter of 2013 contains statistics from 45 countries.


Worldwide Mutual Fund Assets


Trillions of U.S. dollars, end of quarter


The growth rate of total mutual fund assets reported in U.S. dollars was made larger by U.S. dollar depreciation. For example, on a U.S. dollar–denominated basis, mutual fund assets in Europe increased by 4.8% in the fourth quarter, compared with an increase of 2.6% on a Euro-denominated basis.


On a U.S. dollar–denominated basis, equity fund assets increased 7.2% to US$13.3 trillion at the end of the fourth quarter of 2013, and accounted for over three-quarters of the US$1.2 trillion quarterly increase in global mutual fund assets. Bond fund assets were steady at US$7.1 trillion in the fourth quarter. Balanced/mixed fund assets rose 5.2% in the fourth quarter, accounting for 15% of the global increase in assets, while money market fund assets rose 1.5%.


Worldwide Assets Of Equity, Bond, Money Market, And Balanced/Mixed Funds


Billions of U.S. dollars, end of quarter

Net cash flows into mutual funds worldwide were US$252bn in the fourth quarter of 2013. Flows into equity funds worldwide were US$145bn in the fourth quarter, after experiencing US$77bn of net inflows in the third quarter of 2013. In the Americas, equity funds recorded inflows of US$98bn in the fourth quarter versus net inflows of US$42bn in the third quarter. European equity funds posted an inflow of US$54bn in the fourth quarter, up from the US$36bn net inflow recorded in the previous quarter.


Globally, bond funds posted an outflow of US$15bn in the fourth quarter of 2013, the second consecutive outflow, down from net outflows of US$55bn in the third quarter of 2013. Bond funds reported US$35bn of net outflows in the Americas and net inflows of US$4bn in Europe during the fourth quarter. In the Asia and Pacific region, bond funds recorded net inflows of US$15bn in the fourth quarter compared with net inflows of US$2bn in the third quarter.


Inflows from balanced/mixed funds worldwide totaled US$70bn in the fourth quarter of 2013, compared with US$62bn of net inflows in the third quarter of 2013. Balanced/mixed funds recorded inflows of US$27bn in the Americas and US$41bn in Europe during the fourth quarter.


Money market funds worldwide experienced a net inflow of US$49bn in the fourth quarter of 2013 after registering a net inflow of US$101bn in the third quarter of 2013. The global inflow from money market funds in the fourth quarter was driven by inflows of US$37bn in the Americas and US$41bn in the Asia and Pacific region. Money market funds in Europe posted outflows of US$28bn in the fourth quarter.


Net Sales of Mutual Funds Worldwide

Billions of U.S. dollars


2012 2013
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
All Funds 193 111 181 424 331 114 191 252
Long Term 274 150 195 287 450 212 90 203
Equity -9 -18 -57 17 144 45 77 145
Bond 215 163 194 214 190 54 -55 -15
Balanced/Mixed 57 2 49 43 98 73 62 70
Other 10 3 8 12 19 40 6 3
Money Market -81 -39 -14 137 -119 -99 101 49

Note: Forty countries reported data in 2012:Q1 and 2013:Q3; 42 countries reported in 2012:Q2, 2012:Q4, 2013:Q1, 2013:Q2, 2013:Q3 and 2013:Q4. Assets of reporting countries represented 94% of assets of all countries at the end of 2013:Q4. Net sales are new sales plus reinvested dividends less redemptions plus net exchanges. Components may not sum to total because of rounding or unclassified funds.

At the end of the fourth quarter of 2013, 44% of worldwide mutual fund assets were held in equity funds. The asset share of bond funds was 24% and the asset share of balanced/mixed funds was 12%. Money market fund assets represented 16% of the worldwide total.


Percent of Worldwide Mutual Fund Assets By Type Of Fund, 2013:Q4


By region, 57% of worldwide assets were in the Americas in the fourth quarter of 2013,
31% were in Europe, and 12% were in Africa and the Asia and Pacific region.

Percent of Worldwide Mutual Fund Assets by Region, 2013:Q4


The number of mutual funds worldwide stood at 76,200 at the end of the fourth quarter of 2013. By type of fund, 37% were equity funds, 23% were balanced/mixed funds, 19% were bond funds, and 4% were money market funds.


Percent of Worldwide Mutual Funds by Type of Fund, 2013:Q4
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Note: Other/unclassified includes total funds in Ireland.

 

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