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Collective Investments
Friday, June 1, 2007
More heavy inflows

Worldwide investors remain bullish on equity collective investments judging from the latest global statistics. Net equity inflows more than doubled to US$150 billion in the fourth quarter of last year from the previous quarter’s $65 billion.
The America’s accounted for $79 billion ($18 billion) of equity flows, with $36 billion ($20 billion) from the Asia - Pacific region and Europe with $35 billion ($26 billion).
Di Turpin, chief executive of the Association of Collective Investments says globally the industry is showing impressive growth.  “Net cash flow to all funds worldwide increased to $404 billion in the fourth quarter, from $252 billion in the third quarter of 2006.
If one looks at 2006 as a whole assets were up by 22,5% – the largest increase since 2003 and at the end of the fourth quarter stood at $21,76 trillion. Net inflows (which cover 42 countries) at $1,3 trillion were running nearly 34% ahead of the previous year.”
World-wide 48% of collective investment assets are held in equity funds with 18% in bond and money market funds. Balanced and mixed funds account for 10%.
There was a resumption of interest in bond funds during the fourth quarter with inflows reaching $40 billion after only $3 billion inflows over the past six months. Virtually the entire inflow was due to US investors which contrasted with outflows from European and South American funds.
The US Investment Company Institute (which compiles the figures) says that 53% of the assets were in the America’s, 36% in Europe and 12% in Africa and Asia/Pacific. The number of collective investments funds now totals 61 506.

Copyright © Insurance Times and Investments® Vol:20.5 1st June, 2007
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