Mutual Funds See Gains Despite Dramatically Slower Pace
Slightly positive flows in Asia partially offset redemptions from Europe in August, where greater market concerns over the sovereign debt crisis during the month resulted in $75 billion in net outflows.
“In the past, spikes in net redemptions in response to market volatility were typically short-lived and limited in scope,” said Enskat. “Strong outflows from long-term funds in both Europe and the U.S. in October and November 2008 were followed by a sharp rebound in flows in the first half of 2009. Until recently, three-month rolling flows have stayed at around $100 billion.
“The fund industry has faced and weathered uncertain economic times at many points in the past, but the current market volatility seems structurally different from prior crises.”
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