UCITS enjoyed net inflows of EUR 18 billion in the second quarter of 2011, compared to net inflows of EUR 30 billion in the first quarter of the year, according to the latest quarterly statistical release by the European Fund and Asset Management Association (EFAMA).
This drop was mainly attributable to large net outflows from money market funds, from EUR 9 billion in the first quarter to EUR 30 billion in the second quarter.
Long-term UCITS (excluding money market funds) benefited from net inflows of EUR48 billion during the quarter, up from EUR39 billion in the previous quarter, with all long-term UCITS categories benefitting from increased net sales during the quarter.
Net inflows into UCITS amounted to EUR48 billion during the first half of 2011, slightly behind the EUR55 billion recorded in the same period of 2010. This reduction came on the back of a stream of events from the Arab uprisings and the Japanese earthquake, to concerns about sovereign debt risk, which affected investor confidence.
Total net assets of UCITS decreased by 0.5 per cent in the second quarter to reach EUR 5,921 billion at end June 2011.
Money market funds experienced the highest asset decrease, falling by 3.0 per cent followed by equity funds, which fell by 1.2 per cent.
Net assets of balanced funds enjoyed a leap in net asset growth, up 4.9 per cent during the quarter.
Bond funds also enjoyed an increase in net assets of 1.5% during the quarter.
Total net assets of non-UCITS increased by 1.0 per cent in the second quarter to reach EUR 2,183 billion at end June 2011. Assets of special funds reserved to institutional investors increased by 1.2 per cent during the second quarter, thanks to continued net inflows (EUR16 billion).
The combined assets of the investment fund market in Europe, i.e. the market for UCITS and non-UCITS, edged slightly lower in the second quarter to stand at EUR8,104 billion at end June 2011.
