Though long-term funds continued to attract net inflows, January saw a return to caution according to the European Fund and Asset Management Association (EFAMA).

The association’s latest fund industry fact sheet shows UCITS experienced net inflows in January of €12bn, compared with the €19bn of net outflows recorded in December. EFAMA attributed the turnaround to reduced outflows from money market funds and a return to net inflows in bond and balanced funds.

Long-term UCITS - UCITS excluding money market funds - enjoyed an increase in net inflows in January to €23bn, up from €19bn in December.

Equity funds attracted funds at a lower rate than in December, at €9bn compared to €19bn the previous month. Meanwhile, bond funds returned to positive territory recording net inflows of €2bn up from outflows of €7bn the previous month. Balanced funds witnessed net inflows of €4bn, up from breakeven point in December.

Net outflows from money market funds fell to €11bn in January, from €37bn in December.

Non-UCITS recorded net sales of €13bn in January, down on the €30bn of net inflows witnessed in December. EFAMA said the reduced inflows reflected a lower level of net inflows into special funds reserved to institutional investors, at €12bn down from €30bn in December.

Total assets of UCITS stood at €5.8 trillion at end January 2011, down 0.6% since end December 2010.Total assets of non-UCITS also decreased by 0.1% in January to stand at €1.9 trillion at end January.

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