Investment fund assets withstand 2011 turbulence

The European Fund and Asset Management Association (EFAMA) confirms that investment fund assets managed to withstand the turbulence of the financial markets, according to final quarter statistics.

This latest report highlights some of last year’s key developments which saw buoyant cross-border fund business continuing to grow. The market share of Luxembourg and Ireland in the UCITS industry had increased to 45.8% by the end of the year, compared to 43.9% in 2010. Total net sales of UCITS domiciled in Ireland alone amounted to €62bn in 2011.

Risk aversion increased as investors remained uncertain over the global economic outlook. EFAMA confirms that volatile stock markets and geopolitical events, coupled with downward revision of growth prospects, triggered a decline in stock prices (by way of illustration, the Euro STOXX 600 index fell by 11.5% in 2011) and net outflows from equity funds. 
 
Overall across the last decade, investment fund assets have experienced strong growth. UCITS and non-UCITS assets at end 2001 stood at €4,617bn, while 10 years later total assets of investment funds amount to €7,920bn. In percentage terms, total assets at end 2011 were 72% higher than at end 2001, and 28% higher than at end 2008, during the midst of the financial crisis.

Director General Peter de Proft, said, “Total investment fund assets represented 63% of the European Union’s GDP at end 2011. This confirms the important contribution of investment funds as financial vehicles raising capital from retail and institutional investors, and providing funding to other sectors  including monetary financial institutions, non-financial corporations and government agencies.”

www.efama.org