Money market funds see turnaround in May

Net sales of Ucits decreased to €32bn in May, down from €83bn in April, the European Fund and Asset Management Association (Efama)’s latest Investment Funds Industry Fact Sheet has revealed.

Efama attributed the decrease to a slowdown in net sales of long-term Ucits and a sharp turnaround in net sales of money market funds during the month.

Money market funds registered a turnaround in net sales posting net outflows of €15m, compared to net inflows of €16bn in April.

The survey, which was based on 27 associations representing more than 99.6% of total Ucits and non-Ucits assets at end May 2015, also showed long-term Ucits – excluding money market funds – continued to register net inflows in May of €47bn, albeit at a slower pace compared to April when net sales totaled €66bn.

Net sales of bond funds posted reduced to €9bn, down from €22bn April. Equity funds experienced a decrease in net inflows, registering €2bn compared to €6bn in April.

Balanced fund net sales remained steady at €29bn for the second consecutive month, while total non-Ucits net sales amounted to €21bn, up from €16bn in April.

Bernard Delbecque, director of Economics and Research commented: “Strong demand for balanced funds continued in May whereas greater volatility in stock markets and sharply rising long-dated government bond yields weighed on investor demand for equity and bond funds.”

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