For the first time since 1999, all the fund markets recorded increased fund volumes following intern...
For the first time since 1999, all the fund markets recorded increased fund volumes following international equity markets recovering during the course of 2003, according to DWS Investments.
In contrast to the beginning of last year when many equity indices hit record lows, during this year they achieved considerable price increases, buoyed by the first indications of economic recovery in the US and Europe as well as impressive growth rates in some Asian countries.
Both Dow Jones and Nikkei added 25% last year and the European market index DJ Stoxx added almost 14%. In parallel to equity market recovery, in 2003 a large proportion of new investment was committed to equity funds. In the US and Japan especially, investors withdrew from money market funds and redistributed an element to equity funds.
In 2003, the European fund market assets under management rose 12.1% to e4,110bn. In keeping with how the other fund markets performed, Europe also profited from more optimistic global economic sentiment. This resulted in better prices on the European equity markets and in net inflows returning to equity funds. New money invested in private mutual fund savings almost trebled to e153bn in comparison to e53bn in 2002. France alone accounted for over e46bn which is more than one third of total European inflows, followed by Italy with more than e25bn and Spain with e21bn.
The US fund market rose 16% to more than $7.4 trillion - the largest increase worldwide in assets under management.
Assets invested in mutual funds by Japanese investors in 2003 grew by 3.9% to ¥37.4 trillion. This upturn was mainly due to equity market recovery.
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