World equity assets drop on back of poor markets
Worldwideequity fund assets declined by 8.1 per cent to US$4.82 trillion in the June quarter of 2002, a result theWorldwide Mutual Fund Assets andFlows Surveysays reflects falling stock prices throughout the world.
The survey also showed that total worldwide mutual fund assets, including equities, declined by 1.7 per cent to US$11.56 trillion over the period, though the decline in assets was moderated by weakness in the US dollar.
Released in Australia by theInvestment and Financial Services Association(IFSA), the flows survey found that the Australian mutual funds market showed resilience to report a 3.9 per cent increase in assets to US$363 billion.
Over the period, worldwide bond funds posted a 6.1 per cent gain in assets, while money market funds and balanced/mixed funds rose 1.8 per cent and 0.7 per cent respectively.
Despite the stock market weakness, equity funds posted an inflow of $21 billion in the second quarter, though this figure was down from the $80 billion seen in the first quarter.
Collectively, mutual funds experienced an outflow of US$16 billion, although only money market funds within this group saw redemptions exceed sales after a US$57 billion outflow.
The survey claims that at the end of the June quarter 2002, assets of equity funds represented 42 per cent of all worldwide mutual fund assets.
The survey showed that the Australian mutual funds market maintained its ranking as the fifth largest mutual fund market in the world when measured by current net assets.
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