The global level of assets under management declined by 7% in 2002, according to a report from Cerul...
The global level of assets under management declined by 7% in 2002, according to a report from Cerulli Associates (CA).
Its research concluded that mutual funds lost $1 trillion in assets and new net inflows into collective schemes worldwide totalled only $182bn. It added that equity mutual fund inflows hit a five-year low of $36bn, brought down by mass net redemptions in the US.
A forecast by CA suggested global assets under management will grow 6.7% annually through to 2007: 6% within the US and 7.5% in other markets. The firm said mutual fund exposure to equities dropped from 50% to 37% in the two years to the end of 2002.
Balanced funds were the only sector to see a net outflow of funds in 2002, recording a fall of $8.8bn.
Most other sectors saw a sharp reduction in inflows, with money market funds posting the biggest reduction in 2002, with inflows of just $20.8bn compared to $455.4bn in 2001.
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