The European Fund and Asset Management Association (EFAMA) has confirmed that the last quarter of 2011 saw a reversal of cash net outflows as investment fund assets worldwide increased by as much as 7.5% to reach €19.97 trillion at the end of the year.
These latest figures show that worldwide net cash flows into investment funds returned to positive territory during the last quarter, registering net inflows of €83bn, against net outflows of €104bn in the previous quarter. The turnaround, says EFAMA, is attributable to positive net inflows into both long-term funds and money market funds.
Long-term funds - which includes equity, bond and mixed funds - recorded net inflows during the fourth quarter of €11bn as opposed to net outflows of €58bn in the previous quarter.
Money market funds experienced quarterly net inflows for the first time since the first quarter of 2009. EFAMA confirms that money market fund net inflows amounted to €72bn during the fourth quarter of last year, compared to net outflows of €46bn in the previous quarter. This was due to positive net sales recorded in both Europe and the US of €11bn and €45bn respectively.
By the end of last year, assets of equity funds represented 37% and bond funds represented 23% of all investment fund assets worldwide. The asset share of money market funds was 18% and the asset share of balanced/mixed funds was 10%.
Looking at the worldwide distribution of investment fund assets, the United States and Europe held the largest share in the world with 49.0 percent and 28.2 percent, respectively. This was followed by Brazil (5.7%), Australia (5.6%), Japan (3.9%), Canada (3.6%), China (1.3%), Rep. of Korea (0.9%), South Africa (0.6%) and India (0.3%).
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