15/02/2011
By Matt Ritchie
The latest European Fund and Asset Management Association (EFAMA) investment fund industry fact sheet shows December saw the highest net inflows into equity funds in Europe since the association started collecting monthly data.
Equity funds attracted €19 billion December, after dipping to €8 billion in November from a six-month high of €13 billion in October.
Meanwhile, bond funds recorded net outflows of €7 billion, falling further from just above break-even point in November. Announcing the results, EFAMA attributed weaker demand for bond funds to continued apprehension in sovereign debt markets.
Money market funds continued to suffer from short-term interest rates, competition from bank deposits and recurrent year-end redemptions, EFAMA said.
Undertakings for Collective Investment in Transferable Securities (UCITS) funds experienced net outflows in December of €19 billion, down from the net inflows of €22 billion recorded in November. EFAMA attributed the turnaround in net flows in UCITS largely to record net outflows from money market.
Total non-UCITS recorded net sales of €30 billion in December, up from €14 billion in November. Special funds reserved to institutional investors experienced a jump in net inflows to €30 billion in December, from €13 billion in November.
According to the report, assets of UCITS increased by 1.3% in December, to €5,889 billion. Non-UCITS assets increased 1.7% to €1,919 billion. Overall, total assets of UCITS and non-UCITS amounted to €7,807 billion.
23 associations representing more than 97% of total UCITS and non-UCITS assets at end December 2010 provided net sales and/or net assets data for the report, which can be accessed here.
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