Funds Display Robust Global Showing in Q0305
An ICI news release said fund assets worldwide increased 5.4% to $17.28 trillion at the end of the third quarter of 2005. Net cash flow to all funds worldwide was a robust $305 billion in third quarter compared with $166 billion in the second quarter. Money market fund flows swung strongly into positive territory with a $59 billion advance worldwide, mainly driven by US inflows, ICI said.
class=”normal-1″> ICI said the strength was global in scope. The stock markets in nearly every reporting country experienced positive performance in the third quarter.
class=”normal-1″> On a US-dollar-denominated basis, mutual fund assets in each investment category increased in the third quarter. The largest increase occurred in worldwide assets of equity funds, which reached $7.7 trillion at the end of the third quarter of 2005, pushing ahead by 7.8% over the quarter. Bond fund assets increased 3.5% in the third quarter to $3.5 trillion worldwide. Assets of balanced/mixed funds grew 5.5%. Money market fund assets also rose (2.5%), holding $3.2 trillion worldwide at the end of the third quarter.
class=”normal-1″> Over the third quarter, equity fund flows worldwide increased to $87 billion, compared with $65 billion in the second quarter. Equity fund inflows were particularly strong in Europe, which reported net inflows of $48 billion, more than half of the worldwide total. The Americas reported net inflows to equity funds of $28 billion, while the Asia/Pacific and African regions accounted for $12 billion. Balanced fund flows also picked up steam in the third quarter, rising to $37 billion, compared with $26 billion in the second quarter.
class=”normal-1″> Net cash flow in fixed income was $89 billion, nearly double the pace for the prior quarter. Net inflows in Europe increased, with France and Luxembourg reporting strong inflows; net bond inflows in the Americas increased, lead by large inflows in the United States. Net outflows in the Asia/Pacific region slowed, as inflows to bond funds in Japan helped to offset outflows in Korea and Taiwan in the third quarter.
class=”normal-1″> Equity fund assets represented the bulk of all worldwide mutual fund assets: at the end of the third quarter of 2005, 44% of worldwide mutual fund assets were equity funds. The asset share of money market funds was 18%, while that of bond funds was 20%. Balanced/mixed fund assets represented 9% of the total.
class=”normal-1″> The number of mutual funds worldwide stood at 56,095 at the end of the third quarter of 2005. By type of fund, 41% were equity funds, 24% were bond funds, 20% were balanced/mixed funds, and 6% were money market offerings.
The ICI report is here .