By Matt Ritchie
Ucits funds experienced increased net sales in May, at €22bn compared with €18bn the month before according to data from the European Fund and Asset Management Association (EFAMA).
Announcing the figures, EFAMA said the increase continued a five month trend, and attributed the lift to increased net inflows into money market funds.
Net sales of long-term Ucits, which excludes money market funds, remained steady in May recording net inflows of €8bn.
Bond funds saw net inflows of €20bn during the month, up from €16bn in April. Equity funds continued to record net outflows, at €12bn compared with €7bn in April.
Total assets of Ucits fell by 0.8 per cent in May to €5,849bn, whilst total assets of non-Ucits increased by 0.7 per cent to €2,323bn at month end.
Total assets of Ucits and non-Ucits stood at €8,172bn at end May 2012.
EFAMA director of economics and research Bernard Delbecque said bond funds had continued to benefit from investors’ search for yield.
“This is the continuation of a trend that has started in December 2011 and has remained sustained despite the re-emergence of strong tensions in the euro area sovereign debt markets. These tensions and the ensuing flight to 'safe-haven' and liquid assets also fed the demand for money market funds, to the detriment of investment into equity funds,” Delbecque said.
Twenty-four associations representing more than 97 per cent of total Ucits and non-Ucits assets at end May 2012 provided EFAMA with net sales and/or net assets data for the report.