Mutual funds lose $1trillion in assets over the past year

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...