The Markets August 16, 2011

Funds Globally See $370B Inflows This Year

In the first half of 2011, long-term fund flows reached $370 billion (including Canada and Brazil), despite a difficult economic and political environment globally.

Reported by

Rebecca Moore

According to Strategic Insight (SI), institutional investors redeemed close to $210 billion from money market funds worldwide. Bond and stock funds were the main beneficiaries of net inflows, collecting $175 billion and $116 billion, respectively, year-to-date.

On a regional level, the U.S. led long-term flow contributions with almost $200 billion, followed by cross-border international funds with about $100 billion, and local Asia funds with $42 billion. Net flows to local funds in Europe were flat.

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SI said a possible scenario of a prolonged low-interest rate environment mixed with market volatility could lead to sustained net flows to selected fixed income products in the second half of the year.

Clients of Strategic Insight’s Global Research Service can access the report on http://www.StrategicInsightGlobal.com.