Funds leave Europe for Asia-Pacific

PUBLISHED : Tuesday, 07 May, 1996, 12:00am
UPDATED : Tuesday, 07 May, 1996, 12:00am

International funds rolled into Japanese, United States and Asia-Pacific equities while exiting some major European equities late last year.

In a funds flow report for the final quarter last year Hong Kong equities were the seventh and eighth most popular holdings, by dollar value, among US and European investors in international or non-domestic equities.

In a Technimetrics global equity investment review covering September to December 1995, the value of international equities held by US and European investors overall grew modestly.

European ownership reached US$583.9 billion, covering non-domestic and international holdings, up by 4.5 per cent, the same as in the third quarter.

In the US there was just 0.9 per cent growth in international equities, compared to the 11.9 per cent growth seen in the third quarter. The total holding in all markets was $350.4 billion.

On the full year, US holdings in international stocks were up 24.6 per cent with European holdings up 28.5 per cent and Asia-Pacific holdings up 25.1 per cent.

European ownership of international equities grew by 31.7 per cent and ownership of non-domestic stocks soared 49.1 per cent. In the fourth quarter apart from Europe, US holdings in all other regions grew.

Holdings of Japanese equities grew by 12 per cent to $46.7 billion. European holdings grew from $32.7 billion to $36.2 billion.

Overall in the Asia-Pacific US holdings grew by 3.8 per cent to $91.2 billion and European holdings grew 6 per cent to $70.8 billion.

Technimetrics collects the money flow data from 11,000 institutional investment portfolios worldwide.