Worldwide inflows into investment funds fell by more than half in the third quarter – to €230bn, from €596bn during the previous three months – the European Fund and Asset Management Association (EFAMA) said today.
Much of the decline took place in the emerging markets, according to the data, which was compiled by EFAMA, together with the Investment Company Institute on behalf of the International Investment Funds Association.
China, for example, saw a reduction in net inflows into long-term funds of €209bn during Q3, compared with falls of €41bn in the US and €74bn in Europe, respectively. (See chart, below.)
Equity funds led the rout, the EFAMA/ICI data also showed.
In total, assets held in investment funds worldwide declined by 5.9% to €34.9trn at the end of September, from €37.1trn at end of June. (In US dollars, the decline was of 5.7%, to $39.1 trn.)
The figures were compiled from asset management accounts in 46 countries, according to EFAMA, which didn’t formally comment on the findings in its statement. An industry expert noted, however, that international statistics like these typically fluctuate much more than those of a single market, such as Europe.
Other findings of the EFAMA/ICI report:
• Long-term funds – which basically means all funds in the marketplace except for money market funds – recorded net inflows of just €49bn in the third quarter, compared to €616bn in Q2. (Again, the emerging markets were responsible for much of this decline, with China alone accounting for a €296bn fall in outflows, compared with reductions in the US of €116bn and €129bn in Europe.)
• Equity funds were particularly hard-hit, attracting net inflows in the three months to the end of September of just €79bn, down from €121bn in the second quarter.
• Bond funds posted net outflows of €21bn, less than a fourth of the previous quarter’s net inflows of €101bn.
• Balanced/mixed funds registered net outflows of €34bn, down from net inflows €342bn in the previous quarter.
These changes meant that at the end of the quarter, equity funds accounted for some 39% of global regulated, open-ended fund assets, with bond funds on 21%, balanced funds on 18% and money market funds on 12%. Property funds accounted for some 1.1%, the EFAMA/ICI data show.
By market share, the US (48.4%) and Europe (33.8%) together accounted for more than 80% of total fund assets held globally. Australia (3.7%), Japan (3.2%) and Canada (3%) made up the remaining top five domiciles as of the end of September, according to the EFAMA report.