The European Fund and Asset Management Association, which collated third quarter investment data from 46 countries, said worldwide fund assets increased by 2.5% to €22trn.
Total worldwide net inflows were €167bn during the third quarter, up from €99bn the previous quarter. EFAMA said this increase was largely due to strong net inflows into balanced and bond funds – a sign that while investors are willing to invest, they are still relatively cautious.
Long term funds (all funds excluding money market funds) also registered a net inflow increase compared with the previous quarter, climbing from €141bn to €175bn.
Breaking this down into asset class – bond funds again enjoyed the best quarter attracting €146bn in net inflows, while balanced/mixed funds recorded a huge increase, with net inflows growing from €2bn in the second quarter to €38bn in the third.
Equity funds disappointed however, recording their fifth consecutive quarter of net outflows, with withdrawals hitting €43bn during the period.
EFAMA said at the end of the quarter, assets of equity funds, despite them continuing to haemorrhage money, represented 37% of total investments, while bonds represented 24% of all assets worldwide.
