Mutual Fund Assets Up 4.6% in Q107

August 8, 2007 (PLANSPONSOR.com) - Mutual fund assets worldwide increased 4.6% to reach $22.72 trillion at the end of the first quarter of 2007, with net cash flow to all funds staying strong at $417 billion, compared to $404 billion in the fourth quarter of 2006, according to the Investment Company Institute (ICI).

Long-term funds saw the greatest inflows, with $282 billion in the first quarter up from $261 billion in the fourth quarter. Inflows to money market funds were $134 billion in the first quarter after reaching $143 billion in the fourth quarter.

Asset levels increased in all investment categories in the first quarter, according to the ICI data:  

  • Assets of equity funds grew 4.4% to reach $118 billion;
  • Bond funds were up 3.7% to reach $69 billion;
  • Money market funds grew 4.7% to reach $134 billion; and
  • Assets of balanced/mixed funds increased 6.8%.

class=”normal-1″> The Americas accounted for $80 billion of equity flows and the Asia/Pacific region for $43 billion of equity flows in the first quarter, compared to $79 billion and $36 billion, respectively, in the fourth quarter. Europe registered a net outflow of $5 billion in the first quarter versus a net inflow of $35 billion in the fourth quarter, ICI said.

class=”normal-1″> Net inflows to bond funds in the Americas accounted for $65 billion of net inflows in the first quarter and European bond funds posted $11 billion of net inflows. Bond funds in the Asia/Pacific region experienced net outflows of $7 billion. At $69 billion, first quarter inflows to balanced funds were the strongest since the first quarter of 2006.

class=”normal-1″> Flows into money market funds were $134 billion in the first quarter, matching the pace of the second half of 2006.

class=”normal-1″> Net flows into money market funds in the Americas fell by more than half in the first quarter, to $70 billion from $146 billion in the fourth quarter. In contrast, European money market funds recorded a net inflow of $70 billion in the first quarter, compared to a net outflow of $7 billion in the fourth quarter.

class=”normal-1″> For the full ICI report visit  http://www.ici.org/stats/mf/ww_03_07.html .

«