Net sales of UCITS and AIFs remained in negative territory in June, with net outflows reaching EUR22 billion, compared to EUR2 billion in May, according to the latest Investment Funds Industry Fact Sheet from the European Fund and Asset Management Association (EFAMA).
UCITS recorded net outflows of EUR25 billion, compared to outflows of EUR9 billion in May.
Long-term UCITS (UCITS excluding money market funds) recorded net outflows of EUR4 billion, a level similar to that observed in May (EUR3 billion). Equity funds, meanwhile, registered negative net sales amounting to EUR3 billion in June, compared to EUR4 billion in May, while bond funds sales also remained negative, with net outflows of EUR6 billion, compared to EUR8 billion in May.
Multi-asset funds continued to record net inflows in June: EUR7 billion, compared to EUR9 billion in May.
UCITS money market funds experienced an increase in net outflows from EUR6 billion to EUR21 billion, reflecting the cycle of net withdrawals observed in general at the end of each quarter.
Net sales of AIFs recorded net inflows of EUR3 billion, down from EUR8 billion in May, while total net assets of UCITS and AIFs fell by 1.1% in June to EUR15,854 billion, compared to EUR16,037 billion at end May.
Bernard Delbecque (pictured), Director of Economics and Research, says: “Despite the downturn in net sales observed in May and June, UCITS saw net inflows of EUR186 billion in the first six months of 2018. Still, this level is significantly lower than what was observed during the first half of 2017 (EUR376 billion). There are two main reasons for this outcome: firstly, 2017 was truly an outstanding year in terms of net sales of UCITS, and secondly, the challenging market and political environment that has developed in recent months has undermined investor confidence.”