UCITS experienced a sharp decline in net sales in August registering EUR9 billion, compared to the net inflows of EUR63 billion in July, according to the latest investment funds factsheet from the European Fund and Asset Management Association (EFAMA).
This can be attributed to outflows from equity and bond funds, as well to a reduction of net inflows into balanced funds and money market funds.
Long-term UCITS (UCITS excluding money market funds) registered net outflows of EUR3 billion, down from net inflows of EUR39 billion in July, while bBond funds recorded net outflows of EUR12 billion, compared to net inflows of EUR4 billion in July.
Equity funds also saw net outflows (EUR3 billion compared from net inflows of EUR12 billion in July), but net sales of balanced funds remained positive, totalling EUR8 billion compared to EUR18 billion in July.
Money market funds meanwhile, recorded net inflows of EUR12 billion, compared to EUR24 billion in July and total non-UCITS net sales amounted to EUR6.4 billion in August, down from EUR8 billion in July. Net sales of special funds (funds reserved to institutional investors) totalled EUR8.3 billion, up from EUR6.5 billion in July.
Net assets of UCITS and non-UCITS stood at EUR7,970 billion and EUR4,373 billion at end August 2015. Overall, total net assets of the European investment fund industry decreased by 2.5 per cent in August to stand at EUR12,343 billion at end August 2015.
Bernard Delbecque (pictured), Director for Economics and Research at EFAMA, says: “Volatile markets triggered net outflows from equity and bond funds in August. However, total net sales of UCITS and non-UCITS remained positive, totalling EUR15 billion”.