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$500 Billion In Net Flows To Mutual Funds Worldwide In First Half 2010
Despite a challenging second quarter, net flows to long-term mutual funds worldwide in the first half of 2010 reached $500 billion, twice as much as in 1H 2009, according to Strategic Insight, a business intelligence provider to the fund industry.
“Year-to-date, bond funds continued to be the main driver of flows, adding a net $315 billion, followed by equity/mixed funds with a combined net intake of $120 billion; ‘other’ funds, mostly alternative “Newcits” and absolute return funds, collected almost $50 billion in cash flows, a sign of continued convergence between the traditional and alternative fund space,” noted Daniel Enskat, Senior Managing Director and Head of Global Consulting at SI.
FUND FLOWS IN 1H 2010:
LOCAL EUROPE: $63B
Source: Strategic Insight Simfund databases
Among the key product innovation and distribution trends of the first half:
* The Fantastic Four – Global Fixed Income, Emerging Market, Asia-Pac and Absolute Return: Top cash flow categories include global fixed income, Emerging Market and Asia Pacific bonds and equities, alongside innovative alternatives and absolute return.
* Templeton on Top: Franklin Templeton surpassed Blackrock to become the best selling cross-border long-term fund manager in the first half of the year, followed by Carmignac, Pictet, Allianz and Schroders.
* Profitability variance – not all flows are created equal: Significantly different management fees for multi-billion dollar flagship funds resulted in a different profitability picture for top fund flow managers.
* Main Street/Wall Street Rapprochement:
“SI fund flow data from around the world shows that over half of the top selling funds in the first half of 2010 were ‘bridge products’, moving investors from a thematic story to a long-term investment solution in dollar-cost-
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Strategic Insight, an Asset International company, is a leading research firm for the mutual fund and wealth management industry, providing clients with in-depth studies, consultation, and electronic decision support systems.