Investors retreated to safe havens in August – Efama
Ucits funds recorded net outflows in August of €20bn, up from net outflows of €14bn in the previous month, according to the latest fact sheet from the European Fund and Asset Management Association (Efama).
A large turnaround in net inflows into money market funds was outpaced by significant outflows from all long-term Ucits categories.
During August, long-term Ucits excluding money market funds saw their highest level of net outflows since October 2008. However, the level of net outflows at €53bn was much smaller than in the aftermath of the Lehman Brothers collapse when it reached €111bn, Efama said.
Bond and balanced funds both witnessed sharp turnarounds in net flows in August to register net outflows of €13bn and €11bn, respectively. Net sales of equity funds plummeted to record net outflows of €26bn, compared to net outflows of €1bn in July.
Money market funds experienced a sharp swing in net flows during August to record net inflows of €33bn, compared to net outflows of €25bn in July. In August, investors used money market funds as a safe haven, in contrast to events of October 2008 which saw money market funds losing €19bn of net new money, Efama said.
Total non-Ucits funds saw increased net sales in August of €8bn, up from €6bn in July. This was due to an increase in net inflows to special funds reserved to institutional investors which rose to €8bn during the month, from €6bn in July.
Total assets of Ucits amounted to €5,556bn at end August 2011, a decline of 4.7% since end July.
Total assets of non-Ucits also witnessed a drop in net assets of 1.3% to €2,068bn. Consequently, at end of August, non-Ucits had net assets still higher than at end 2010, whereas the level of Ucits assets had retreated to July 2010 levels.