Ucits net sales above €100bn in Q3
Net sales of Ucits increased during the third quarter to €130bn from €126bn in the second quarter, the latest report from Efama has revealed.
However, long-term Ucits attracted net inflows of some €117bn, down from €148bn of previous quarter.
Efama also said that demand for bond funds remained high in the third quarter, despite reducing to €47bn from €56bn in the previous quarter.
Net inflows to equity funds fell to €14bn, from €24bn in the second quarter. Net sales of balanced funds posted strong net inflows during the quarter of €52bn, albeit down from €56bn in the second quarter.
Money market funds registered a turnaround in net flows during the quarter to post net inflows of €13bn, against net outflows of €22bn in the second quarter.
So far in 2014, Ucits attracted EUR 405 billion in net inflows, more than double the EUR 178 billion attracted over the same period in 2013.
Looking at net assets by investment type, Efama pointed out that the third quarter of 2014 was marked by geopolitical tensions, global stock market volatility and heightened concern about the threat of deflation in Europe.
“These uncertainties have contributed to a slowdown in the net sales of equity funds, which fell into negative territory in September. By contrast, demand for bond and balanced funds remained robust throughout the quarter, as the ECB cut interest rates to record lows and announced plans for monetary easing. Over the quarter money market funds registered net inflows, but habitual end of quarter net outflows were posted in September,” the release read.
In terms of net sales per countries, Efama said that 20 of the European countries registered net inflows in the third quarter of 2014, with ten countries recording net inflows greater than €1bn and three countries recording net inflows over €10bn.
Here’s a list of the countries and their net inflows in Q3 of 2014:
- Luxembourg – €64bn
- Ireland- €28bn
- Italy – €12bn
- Spain – €9bn
- Switzerland – €8bn
- UK – €3bn
Both Germany and France registered net outflows during the quarter, of €76m and €1.3bn respectively.
Elsewhere, the Nordic countries all enjoyed net inflows of some €2bn. Net inflows were recorded across Central Europe (Austria, Hungary, Romania, Czech Rep., Slovakia, Croatia and Slovenia).
Turkey and Malta posted net inflows of €0.4bn and €0.3bn, respectively. In the Mediterranean region net outflows were observed in Portugal (€0.5bn) and Greece (€0.1bn).