UCITS funds net sales at €22bn in May, EFAMA reports

For the fifth consecutive month, UCITS funds experienced a net sales increase in May of €22bn, according to the Investment fund industry fact sheet published today by The European fund and asset management association (EFAMA).

The figure marks an increase compared to €18bn sales reported in April.

This rise was attributable to increased net inflows into money market funds, as net sales of long-term UCITS (UCITS excluding money market funds) remained steady in May recording net inflows of €8bn, EFAMA said.

Total assets of UCITS fell by 0.8% percent in May to stand at €5,849bn. Total assets of UCITS and non-UCITS stood at €8,172bn at the end of the month.

Bond funds recorded increased net inflows during the month totaling €20bn, up from €16bn in April.

Equity funds continued to record net outflows, at €12bn, compared to €7bn in April.

Balanced funds witnessed reduced net outflows of €1bn, compared to €3bn in April.

Meanwhile, money market funds recorded the seventh consecutive month of net inflows in May of €13bn, compared to €10bn in April. Total net sales of non-UCITS were €8bn in May, down from €9bn in April.

Net sales of special funds remained steady recording inflows of €5 billion in May.

Bond funds continued to benefit in May from investors’ search for yield in an environment of low and declining long-term interest rates, according to Bernard Delbecque, director of economics and research at EFAMA.

“This is the continuation of a trend that has started in December 2011 and has remained sustained despite the re-emergence of strong tensions in the euro area sovereign debt markets. These tensions and the ensuing flight to “safe-haven” and liquid assets also fed the demand for money market funds, to the detriment of investment into equity funds,” he said

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