Sharp turnaround for UCITS funds in June, outflows at €33bn, EFAMA

Net sales of UCITS funds recorded a sharp turnaround in June, registering net outflows of €33bn against net inflows of €22bn in May, according to investment sales and asset data for June published by the European fund and asset management association (EFAMA).

According to EFAMA, which represents associations accounting for about 97% of total UCITS and non-UCITS assets, this turnaround came on the back of large net outflows from money market funds, which recorded net monthly outflows for the first time since October 2011.

“Long-term UCITS registered net outflows in June of €9bn, compared to net inflows of €8bn in May,” EFAMA said.

Bond funds saw a decrease in net inflows from €20bn to €5bn in a month. Outflows from balanced funds increased to €3bn during the month. Equity funds recorded reduced net outflows of €9bn, compared to €12bn in May.

In June, total net sales of non-UCITS increased to €11bn, while net inflows into special funds reserved to institutional investors doubled to €10bn.

Total net assets of UCITS increased in June by 0.3% to €5,865bn; non-UCITS net assets increased 2.2% in the month to stand at €2,375bn.

“Uncertainty regarding policy actions to reduce tensions in several euro area bond markets caused caution amongst investors in June, prompting reduced demand for bond funds. The large net outflows of money market funds are partly due to cyclical end-of-quarter withdrawals,” said Bernard Delbecque, director of economics and research at EFAMA.

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