During the second quarter, the net cash flow to all funds worldwide was $434 billion – the third consecutive quarter net flows bested the $400-billion mark, ICI said.
Long-term fund inflows were up slightly to $294 billion in the second quarter from $283 billion in prior three-month period. Money market inflows stayed “robust,” according to ICI, at $139 billion in the second quarter, compared to $134 billion in the first quarter of 2007.
Most reporting countries had a positive net cash flow in the second quarter of 2007 and positive stock market performance. However, in many countries, growth in assets reported in U.S. dollars was boosted by depreciation of the dollar, the ICI pointed out. For example, European mutual fund assets figured on a U.S.-dollar-denominated basis increased 5.8%, compared to a 4.3%-increase on a Euro-denominated basis.
Meanwhile, on a U.S.-dollar-denominated basis, asset levels increased in all investment categories. Equity fund assets grew 8.1%, with $11.9 trillion in assets at the close of the second quarter of 2007. Bond funds were up 2.8%, and money market funds grew 5% in the quarter. Assets of balanced/mixed funds increased 7.5% to $2.4 trillion.
The ICI data showed net second-quarter flows to bond funds increased substantially to $98 billion, up from $69 billion in the first quarter of 2007. Net inflows to bond funds were $65 billion in the Americas and $15 billion in Europe in the second quarter, about in line with their first-quarter pace. Most of the speeding up of bond fund flows was attributable to the Asia/Pacific region, which registered inflows of $17 billion in the second quarter after experiencing net outflows of $7 billion in the first quarter.
Equity funds held the bulk of all worldwide mutual fund assets (49%). Bond funds held 17% of assets, and money market funds held 18%. Balanced/mixed fund assets represented 10% of the total.
The ICI data is here .