GLOBAL - Cash and short-term funds have exceeded actively managed equity funds by fund size for the first time across the 30 largest cross-border fund managers, according to new research from Fitzrovia International.
At the end of June 2002, cash/short term funds represented 30% of total net assets compared to actively managed equity funds which accounted for 28.3%. The Pioneer Euro Short-Term, Merrill Lynch Inst. Liquidity (Sterling) and Citi Institutional Liquidity Fund (US$ Liquidity) all benefited from the increase.
The largest percentage growth by asset class was recorded for alternative investment funds, rising by 17.4% to US$4.4bn in net assets. This was followed by bonds up 2.4% to US$155.6bn; cash/short-term was also up by 2.4% to US$225bn. Protected capital and fund of funds vehicles also saw growth of 1.9% to US$25.6bn, and 1.3% to US$44.7bn, respectively. But property/real estate funds took the biggest knock with a 14.2% fall to US$1.11bn.
Overall, despite the severe downturn in world stock markets, the new figures showed that the monthly change in total net assets across the 30 promoters of Luxembourg and Dublin domiciled funds was down only 0.8%.
Of the 30 companies, the highest monthly increase was recorded by Citibank, with 4.8% (US$818.4m). Barclays’ rise of 3.1% saw the firm enter the top 10 for the first time. Deutsche Bank/DWS saw the biggest rise of 3.2% or US$50.7bn. But UBS topped the tables with fund assets of US$91.4bn .
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