EUROPE – The combined assets of Europe’s investment fund market fell 5.2% during the third quarter of the year, according to FEFSI, the pan-European federation of investment managers associations and companies.

Net assets under management in the European investment industry totalled 4.23 trillion euros at the end of September this year, compared to 4.44 trillion euros at the end of the second quarter 2002. This marks a 7.4% fall since the beginning of the year.

The decline was concentrated in equity funds, while bond funds, money market funds and real-estate funds continued to play their role as safe haven savings vehicles, says the report.

France, Luxembourg and Germany continued their dominance, but saw their global market share fall to 58% from 60% at the end of the second quarter.

In the UCITS market, total assets also dropped by 5.2% during the third quarter of 2002, reflecting the impact of slides in stock prices on equity and balanced funds. Money market funds gained 26 billion euros in assets during the period, bringing the total year-to-date asset increase to 91 billion euros, with a 48 billion increase registered in France.

Assets under management in the non-UCITS market totalled 937 billion euros at the end of the third quarter from 966 billion euros at the end of the second quarter and 986 billion euros at the end of the first quarter. Spezialfonds continued to grow, bringing the year-to-date new cash flows to 23 billion euros.