ECB policy actions drive increased sales on long-term Ucits during third quarter
Despite large withdrawals from money market funds, Ucits enjoyed increased net inflows of EUR20bn in the third quarter of 2012, up from EUR7bn recorded in the second quarter, according to the European Fund and Asset Management Association (EFAMA).
A steep rise in net sales of long-term Ucits, reflecting improved investor optimism on account of ECB policy actions, was the main driver behind the increased net sales of Ucits.
Long-term Ucits, i.e. Ucits excluding money market funds, experienced net inflows of EUR51bn during the quarter, compared to EUR8bn in the previous quarter.
Bond funds attracted strong net inflows of EUR50bn, up from EUR42bn in the second quarter.
Net sales of balanced funds returned to positive territory with net inflows of EUR10bn.
Equity funds registered reduced net outflows of EUR9bn, compared to EUR28bn in the second quarter.
Money market funds recorded a steep increase in net withdrawals during the quarter registering EUR31bn, compared to EUR1bn in the previous quarter. The continual low interest rate environment continued to have a negative effect on money market funds.
Total Ucits net assets rose 3.7 per cent during the third quarter to stand at EUR6,174bn at end September 2012. Both equity funds and bond funds registered increases of 5.6 per cent during the quarter. Balanced funds also enjoyed strong growth of 4.5 per cent. In contrast, money market funds registered a reduction in net assets of 2.5 per cent.
Total net assets of non-Ucits increased by 3.3 per cent in the third quarter to stand at EUR2,567bn at end September 2012. Assets of special funds reserved to institutional investors registered growth of 4.5 per cent during the quarter, thanks to sustained net sales (EUR16bn, compared to EUR21bn during the second quarter).
The combined assets of the investment fund market in Europe, i.e. the market for Ucits and non-Ucits, increased by 3.6 per cent in the third quarter to stand at EUR8,741bn at end September 2012. This compares to net assets of EUR7,960bn at end 2011.