Investor’s allocation in UK equities have plummeted 7.5%, while investors’ international equity allocation has surged up by 12.5% since 1997.
“The move towards international equities since launch in 1997 is stark. Portfolio managers are not limiting their horizons in seeking the best return on investment for their clients,” Tim May, chief executive of the WMA, said.
He added that the advent of easier cross-border dealing combined with the greater availability of information on overseas markets is allowing managers to diversify their investments more than ever before.
Private Investor Figures
Figures are derived from the FTSE WMA private investor indices – first launched in 1997 – to provide investors an objective measure of performance against which to monitor their investment portfolios.
The WMA re-launched the indices today, following the establishment of the WMA end-2013, when the association ditched its predecessor APCIMS (the Association of Private Client Investment Managers and Stockbrokers).
Cash Flow Stats
Figures released today by the European Fund and Asset Management Association (EFAMA) support the investor trend towards international equities.
World-wide net cash flow to all funds increased 67% in the third quarter 2013, compared to the second quarter, EFAMA statistics show. Meanwhile, net inflows into worldwide equity funds were up 118% in the same period and bond funds net flows increased 19%. By contrast, money market funds weakened and were down 4% in the third quarter, compared with the second.
Worldwide Mix
At the end of the third quarter of 2013, 39% of worldwide investment fund assets were held in equity funds. The asset share of bond funds was 23% and the asset share of balanced/mixed funds was 11%. Money market fund assets represented 15% of the worldwide total.
Global Distribution
At the end of September 2013, the worldwide distribution of investment fund assets were pre-dominantly held in the US and Europe, at 50.1% and 28.6%, respectively. Australia, Brazil, Canada, Japan, China, the Republic of Korea, South Africa and India follow in this ranking.
