Net outflows from UCITS funds more than doubled from €20bn in August to €49bn in September, the European Fund and Asset Management Association (EFAMA) revealed today.

For EFAMA’s latest Investment Fund Industry Fact Sheet, 23 associations representing more than 97 per cent of total UCITS and non-UCITS assets at end September 2011 provided the European association with net sales and/or net assets data.

Long-term UCITS (UCITS excluding money market funds) saw net outflows of €37bn compared to €53bn in August. Bond and balanced funds remained relatively steady in September with net outflows of respectively €12bn and €10bn. Net outflows from equity funds reduced from €26bn in August to €17bn in September.

Money market funds recorded net outflows of €12bn, reflecting a cyclical pattern of end of quarter outflows and came against a backdrop of net inflows of €33bn registered in August.

Total non-UCITS registered net sales stood at €5bn, down from €8bn at end August, due to a reduction in net inflows to special funds (funds reserved to institutional investors) from €8bn to €5bn at the end of September.

Total assets of UCITS decreased with 2.6 per cent to €5,414bn at end September 2011. Total assets of non-UCITS also decreased slightly in September to stand at €2,046bn.

Bernard Delbecque, director of economics and research at EFAMA, said: “A worsening of the euro area sovereign debt crisis amidst weakening economic growth continued to undermine investor confidence in September. At the same time, net outflows from equity funds declined somewhat in September, suggesting resilience from investors despite the global uncertainties. Investors seem to be waiting for a clear solution to the euro debt crisis before returning to long-term investments.”

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