Global AuM Steady In July As Bond, Commodity Funds Suffer Outflows – Lipper Data

Amisha Mehta, Assistant Editor, London, 20 August 2015


The global asset pool rose from $35.905 trillion in June to $35.934 trillion last month despite net outflows from bond and commodity funds, according to data.

Global assets under management remained steady in July at $35.9 trillion thanks to net inflows of $114.9 billion, according Lipper’s Global Fund Market Statistics. 

As Greece's debt negotiations progressed, European equities saw $7.1 billion in net inflows over July. Almost all asset types except bond and commodity funds, which lost $0.6 billion and $1.7 billion respectively, generated net inflows over the month. 

Money market funds led the way, drawing in $77.7 billion, indicating some money being put aside amid market volatilities, mainly in the form of China equity turmoil. This was followed by equity funds globally, which attracted $29.5 billion. China's equity funds suffered net outflows of $1.5 billion in July, according to the data. 

Meanwhile, the US equity market had to accept redemptions for another month, this time experiencing net outflows of $7.3 billion.

“The outlook for the securities market does not give a clear indication where it is heading. On the one hand it is anticipated that the Fed [US Federal Reserve] will raise interest rates this year but, on the other, this seems unlikely as US macroeconomic data shows little signs of significant improvement,” said Lipper’s global head of methodology, Otto Christian Kober.

“Cheap money (from borrowing at low rates) isn’t finding its way into the real economy, as investors prefer to stay on the sidelines, accepting lower interest rates for less risk in fixed income markets.”

All asset types posted negative average returns, with commodity funds taking the biggest hit, falling 8.7 per cent, due to a further drop in energy prices following Iran's agreement with major powers about its nuclear activities and a sharp decline in the price of gold, the firm said.

Register for WealthBriefing today

Gain access to regular and exclusive research on the global wealth management sector along with the opportunity to attend industry events such as exclusive invites to Breakfast Briefings and Summits in the major wealth management centres and industry leading awards programmes