FEFSI: Developments in Worldwide Investment Fund Industry

07 July 2003

This new international statistical release highlights the most recent developments in the worldwide investment fund industry in the first quarter of 2003. Main highlights in the Statistical Release are:

Investment fund assets worldwide fell by 3.8 percent in the first quarter of 2003 to EUR 10.3 trillion. The decline reflected weakness in the U.S. dollar, which moved lower against most currencies. Measured in local currencies, fund assets in the United States fell by 2.0 percent and in Europe by 1.0 percent.

Worldwide equity fund assets, measured in euros, dropped 7.8 percent, as most stock markets came under selling pressure during the first quarter. Balanced/mixed funds also suffered from the market downturn. In contrast, bond fund assets rose by 1.8 percent, paced by strength in Europe. Despite sizable gains in Europe (+ 8 percent), money market funds assets fell by 3.4 percent because of declines in the United States and the Asia-Pacific region.

Net sales of investment funds were EUR 12 billion in the first quarter of 2003, down from EUR 148 billion in the fourth quarter of 2002. This decline largely reflected a net outflow of EUR 65 billion from U.S. money market funds, which reversed a EUR 108 billion inflow in the previous quarter. Net sales of bond funds were at a robust EUR 81 billion, whereas equity funds posted a small outflow of EUR billion.

Statistical release

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