Assets in Mutual Funds Worldwide Plunge in Q308
Net cash flow to all funds was negative in the third quarter with $218 billion in outflows – the first worldwide outflow recorded since the third quarter of 2002, ICI said.
Net outflows from equity funds worldwide were $151 billion in the third quarter, compared with a net inflow of $29 billion in the second quarter of 2008. The Americas registered net flows of $95 billion out of equity funds in the third quarter, while European equity funds posted $64 billion in outflows. Flows to equity funds in the Asia/Pacific region slowed but remained positive, dropping to a $9 billion inflow in the third quarter compared to $16 billion in the second quarter, according to ICI data.
Bond funds experienced $66 billion in net outflows in the third quarter of 2008, compared to net inflows of $14 billion in the second quarter of 2008. The Americas experienced net inflows of $15 billion to bond funds in the third quarter, down from $39 billion in the second quarter. In contrast, Europe continued to experience net outflows from bond funds, with $61 billion in net outflows in the third quarter, compared to net outflows of $39 billion in the second quarter. Bond fund flows turned negative in the Asia/Pacific region, with outflows of $21 billion in the third quarter compared to inflows of $15 billion in the second quarter.
Worldwide outflows from balanced/mixed funds were $24 billion in the third quarter of 2008, compared to approximately zero net flows in the first half of the year. Net outflows from balanced/mixed funds in the Americas were $11 billion in the third quarter, about offsetting the $11 billion inflow registered in the second quarter. European balanced/mixed funds experienced net outflows of $10 billion in the third quarter compared with net inflows of $3 billion in the second quarter.
Net flows into worldwide money market funds were $28 billion in the third quarter of 2008 compared to outflows of $70 billion in the second quarter of 2008. Both the Americas and Europe experienced inflows into money market funds, with a combined net flow of $44 billion in the third quarter compared to a combined outflow of $83 billion in the second quarter. Asia/Pacific money market funds registered net outflows of $18 billion in the third quarter after reporting net inflows of $12 billion in the second quarter.
At the end of the third quarter of 2008, 40% of worldwide mutual fund assets were held in equity funds, 18% in bond funds, and 10% in balanced/mixed funds. Money market fund assets represented 25% of the worldwide total, ICI said.
By region, 55% of worldwide assets were in the Americas in the third quarter of 2008, 34% were in Europe, and 11% in Africa and Asia/Pacific.
The number of mutual funds worldwide stood at 69,477 at the end of the third quarter of 2008 – 40% equity funds, 21% balanced/mixed funds, 18% bond funds, and 5% money market funds.
The ICI data is here .