Equity fund flows worldwide were $86 billion in the fourth quarter, up from $31 billion in the third quarter. The Americas accounted for $66 billion of equity flows in the fourth quarter and the Asia/Pacific region for $57 billion, compared to $14 billion and $48 billion, respectively, for the prior quarter.
ICI said Europe registered a net outflow of $37 billion from equity funds during the last three months of 2007, compared to a net outflow of $31 billion in the third quarter. Bond funds experienced a $28 billion net outflow, compared to a net outflow of $50 billion in the third quarter.
The net outflow from bond funds was $46 billion in Europe in the fourth quarter, compared to a net outflow of $63 billion in the third quarter. Bond funds posted a net $33 billion inflow in the United States in the last quarter of 2007, up from $21 billion in the prior period.
Worldwide inflows to balanced funds were $45 billion in the fourth quarter, with $28 billion, or about three-fifths, attributable to the Americas. Flows into money market funds remained robust at $244 billion, down from $279 billion in the third quarter.
ICI said fund assets worldwide increased 1.6% to $26.2 trillion at the end of the fourth quarter. During the 2007 calendar year, fund assets grew 20.1%.
The latest ICI data report said growth in assets reported in U.S. dollars was boosted by depreciation of the dollar. For example, mutual fund assets in Europe on a U.S.-dollar-denominated basis increased 1.7% in the fourth quarter of 2007, compared to a 2% decrease on a Euro-denominated basis.
On a U.S.-dollar-denominated basis, asset levels increased for both long-term and money market funds. Assets of equity funds fell 0.4%, with $12.5 trillion in assets at the end of the fourth quarter of 2007.
More information is available at http://www.ici.org/stats/mf/ww_12_07.html.