June Long-term UCITS Outflows Less Severe than May

The European Fund and Asset Management Association (EFAMA) has today published its latest Investment Fund Industry Fact Sheet*.

The main developments in June in the reporting countries can be summarised as follows:

•  Long-term UCITS (UCITS excluding money market funds) experienced net outflows for the second month in a row, albeit significantly less severe than in May (0.2 billion compared to EUR 8 billion). The main reason for this positive outcome was a sharp decline in the net outflows from equity funds, from EUR 11 billion in May to EUR 2 billion in June.
• UCITS recorded net outflows of EUR 31 billion in June, compared to net outflows of EUR 23 billion in May. This development was spurred by a sharp rise in net withdrawals from money market funds from EUR 14 billion in May to EUR 31 billion in June, reflecting the normal trend of redemptions taking place at the end of each quarter.
• The measures decided upon to strengthen the Euro area and help member countries in difficulty contributed to improved investor confidence in June, leading to a sharp reduction in outflows from long-term UCITS.
•  Bond funds also recorded net outflows in June (EUR 3 billion, compared to EUR 2 billion in May). Balanced funds continued to attract new money in June (EUR 3 billion), whilst special funds reserved to institutional investors jumped to record net inflows of EUR 12 billion in June.
•  The value of total assets in UCITS fell by 0.4 percent in June compared to end May, whilst total non-UCITS rose 1.0 percent.
23 associations representing more than 97 percent of total UCITS and non-UCITS assets at end June 2010 provided EFAMA with net sales and/or net assets data.

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