MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Global Trends
Risks to the outlook include politics getting in the way of necessary measures in the
US and Eurozone. Geopolitical risk remains present as ever and a conflict that involves
Iran would likely lead to a sharp rise in energy prices. On the other hand, a deeper
slowdown emanating from Eurozone would soften energy prices and act as an automatic
stabilizer to global activity. Other worries include historically high debt levels and lower
than expected growth. Finally, extended period of low interest rates may be creating new
bubbles in a number of geographies and asset classes which may burst when rates rise.
Global Fund Trends
Investor demand for bond funds against background of low interest rates
Global mutual fund assets stood at US$ 24.8 trillion (-4.5% y-o-y) at the end of
2012Q2 in 73,490 funds according to data compiled by Investment Company institute
(ICI) from 46 countries. The decline in mutual fund assets largely emanated from the
decline in global equity prices from a year earlier and due to Euro weakness and the
exchange rate effect weighing on European fund assets in US$ terms.
Global Fund Assets
(trillions of U.S. dollars, end of period)
26.1
24.8
24.6
24.7
23.0
21.6 22.4
23.7
21.4
18.9 18.8
16.8
25.9 25.6
23.8
24.8
23.1
Dec-07 Sep-08 Jun-09 Mar-10 Dec-10 Sep-11 Jun-12
Source: Investment Company Institute, Washington, DC, 2012
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