13/01/2011
By Matt Ritchie
The escalating debt crisis in the Euro area reduced demand for bond funds over November and encouraged investors back to money market funds, according to the latest European Fund and Asset Management Association (EFAMA) investment fund industry fact sheet.
The monthly fact sheet represents net fund product sales and/or net assets data for UCITS and non-UCITS assets provided by 23 National Associations across Europe.
It shows UCITS experienced net inflows of €16bn in November, up from the €7bn recorded in October. This increase in net inflows came on the back of a large swing in net flows in money market funds during November.
Net inflows into money market funds rose to €4 billion in November, up from net outflows of €20 billion the previous month. November was the second month money market funds recorded positive flows since August 2009.
Year-to-date, UCITS have recorded net inflows €92bn, down from €139bn for the same period in 2009. EFAMA attributed the reduction to the large outflows from money market funds. Money market funds have recorded net outflows of €123bn year-to-date, well up on the €16bn in outflows recorded in the first eleven months of 2009.
Long-term UCITS (UCITS excluding money market funds) recorded net inflows of €12bn in November, down from €26bn in October.
There was little change in recorded net sales of non-UCITS at €12 billion in November. Special funds reserved to institutional investors recorded large net inflows of €12 billion, matching the level seen in October.
Total assets of UCITS increased by 1.8% in November to stand at €5,815bn, whilst non-UCITS increased 1.1 percent to record assets of €1,887bn.
Net inflows into equity funds totalled €8bn in November, down from €13bn in October but up on the €6bn recorded in November 2009. Bond funds weakened considerably, with net inflows reducing from €8bn in October to just above breakeven point. Net sales of balanced funds remained subdued at €2 billion in November, down from €3bn in October.
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