14/04/2011
By Matt Ritchie
Strong inflows into balanced and money market funds saw inflows into UCITS funds double month-on-month in February, according to the European Fund and Asset Management Association (EFAMA).
The association’s latest fund industry fact sheet, using data from 23 associations representing more than 97% of total UCITS and non-UCITS assets, shows net sales of UCITS increased to €26.8 billion in February, up from €12.1 billion in January.
Money market sales increased from net outflows of €10.7 billion to net sales of €7.6 billion. Balanced funds doubled sales month-on-month, to reach €8.2 billion in February.
EFAMA said the turnaround in money market funds may be partly explained by political unrest in the Middle East and North Africa and rising oil prices, which caused caution amongst investors. The increase in money market rates and a stabilisation of investor demand for money market funds were also cited as potential drivers.
Equity funds attracted just €3 billion in February, compared to €9 billion the previous month. Meanwhile, bond fund inflows continued stabilising in February at €3 billion, slightly up on January’s €2 billion.
Total non-UCITS recorded net sales of €9 billion in February, compared to €13 billion in January. EFAMA said the fall reflected lower net inflows into special funds reserved to institutional investors.
Total assets of UCITS amounted to €5,921 billion at end February 2011, an increase of 1.2% since end January. Total assets of non-UCITS also increased month-on-month by 0.9% to stand at €1,958 billion.
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