Spanish funds market records first 3-mo inflows since 2006

The Spanish fund market has recorded its first quarterly gross flows since 2006. According to Ahorro Corporación, gross flows for December to February were €3.25bn.

The fund group believes good market performance prompted higher levels of investment in mutual funds.

Net flows remain weak. Net inflows totalled €140m in February. Investors withdrew around €10 billion during the ten preceding months.

The guaranteed fund sector was the most popular last month. It now accounts for 40.4% of all Spanish fund assets.

Short term fixed income suffered the heaviest withdrawals. Ahorro Corporación says changes to La Caixa’s fund range were responsible. It closed six fixed income fund and created nine new money market funds.

La Caixa’s asset management arm, InverCaixa, also suffered the largest group outflows in February. It lost the mandate to run three equity funds for ING. The funds are now run by Amundi.

Fund returns are rising. Ahorro Corporación calculates that fund performance for January and February was 2.49%. Returns this year are already above the total return for 2011.

Equity funds performed best, rising 7.36% so far in 2012. Property is the only sector to have recorded falls, down 0.53% so far.

‘The stability of Spanish fixed income and the strong performance of global equities have restored fund consistency which has translated into positive returns,’ says Ahorro Corporación.

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