UCITS funds still robust despite outflows, says EFAMA
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UCITS funds still robust despite outflows, says EFAMA 17 September 2014Brussels Reporter: Stephanie Palmer
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The European Fund and Asset Management Association (EFAMA) has published its latest Investment Funds Industry Fact Sheet, detailing the net sales of UCITS and non-UCITS in Europe.
The data was submitted by 27 companies that, combined, make up more than 99.6 percent of the total European industry.
Net sales of UCITS dropped to €14 billion in September from €41 billion in August, a dramatic reduction that was largely attributed to a return to money market funds throughout the month.
Despite this, net flows of money markets recorded outflows of €14 billion, compared to a net income of €9 billion in August.
Long-term UCITS funds also reported reduced income, with net sales of €13 billion compared to €16 billion in August.
Net flows in to equity reduced for the first time since June 2013, with outflows of €6 billion, compared to an inflow of €2 billion in August.
In contrast, balanced funds reported an increase in net sales from €13 billion in August to €18 billion in September.
In total, non-UCITS funds registered net losses of €7 billion, a reduction in income of €8 billion in August. This has been attributed to outflows in special funds, which in turn are the result of a one-off asset transfer by a large institutional client.
At the end of September 2014, net assets of UCITS funds equated to €7.864 billion, representing an increase of 0.8 percent during the month.
Net assets of non-UCITS funds increased by 0.3 percent to reach €3.112 billion at the end of the month.
Despite a reduction in income compared to August’s figures, the total net assets in the European investment funds industry reached €10.975 billion by the end of September, an increase on September 2013’s figure of €9.471 billion.
Bernard Delbecque, EFAMA director of economics and research, said: “Despite net outflows from equity funds, net sales of long-term UCITS remained robust in September thanks to sustained demand for bond funds and rising demand for balanced funds.”
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