At €30bn total net outflows of Ucits in October were lower than the €49bn in September, according to the latest Investment Fund Industry Fact Sheet by the European Fund and Asset Management Association (EFAMA) published today.

EFAMA collected net sales and/or net assets date from 23 associations representing more than 97 per cent of total Ucits and non-Ucits assets at the end of October. The association said the net outflows reflected exits from long-term Ucits and money market funds.

Long-term Ucits (Ucits excluding money market funds) witnessed net outflows of €19bn in October, compared to €37bn in September and €55bn in August.

Net outflows from equity funds more than halved to €8bn, from €17bn in September and €27bn in August. Net outflows from bonds reduced from €12bn in September to €5bn in October.

Money market funds’ net outflows decreased from €12bn in September to €10bn in October, as banks continued to compete with money market funds to attract investors into deposits. Total non-Ucits net sales increased to €7bn, compared to €5bn at end September, mainly due to an increase in net inflows to special funds (funds reserved to institutional investors).

Total assets of Ucits increased by 2.2 per cent to €5,487bn, following the rebound in stock market prices, while total assets of non-Ucits saw an increase of one per cent to €2130bn.

Bernard Delbecque, director of economics and research at EFAMA, said: “The net sales figures for Ucits showed mixed signals in October: on the one hand, Ucits saw reduced net outflows, as expectations of a conclusive plan to resolve the sovereign debt crisis provided some hope to investors. On the other hand, net withdrawals remained at a high level with all categories affected, as uncertainty lingered and the economic outlook deteriorated.”

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