Worldwide Mutual Fund Assets Down in Q2

November 9, 2004 ( - Worldwide mutual fund assets decreased slightly in the second quarter of 2004, down to $14.41 trillion from a previous high of $14.56 trillion in the preceding quarter.

Net flows into mutual funds worldwide were also down on the quarter, with a net inflow of only $18 billion being posted, a paltry sum compared to the $246 billion in the first quarter, according to an Investment Company Institute (ICI)  release .

Breaking down the worldwide mutual fund industry, equity funds were seen to be in the positive, with a 1.4% increase in assets seen in the second quarter. This brought the total amount of assets in such funds to $6.3 trillion worldwide.   Net inflow into equity funds was $75 billion in the quarter, smaller than the first quarter inflow of $143 billion, but still in the black. All regions, including Asia/Pacific, Africa, Europe, and the Americas reported positive new inflows from April to June, according to ICI.

Bond funds, on the other hand, fell 2.9% in the second quarter, pulled down, at least in part, by an $11 billion outflow. The Americas saw the most severe outflow (negative $11 billion), while Europe and Africa actually saw a net inflow into the bond fund market.

Money market funds worldwide also fell, dropping 2% in the second quarter. Net outflows were severe in this industry, with a $63 billion loss seen. US money market outflows were the most severe ($59 billion outflow), while Europe and Asia/Pacific funds reported modest inflows.

At the end of the second quarter, equity funds accounted for 44% of total mutual fund assets worldwide, with money market funds holding a 23% share of the market Bond funds held a 20% share, while balance/mixed funds were at 9%. Fifty-seven percent of worldwide mutual fund assets were held in the Americas, with 33% being held in Europe and 10% being held in Asia/Pacific and Africa combined.