Net sales of Ucits leapt to €91bn in the first quarter of 2012, up from net outflows of €50bn in the last quarter of 2011, due to increased investor confidence, according to the European Fund and Asset Management Association’s (EFAMA) latest Quarterly Statistical Release.

Long-term Ucits recorded net inflows of €70bn, compared to €61bn of new outflows in the previous quarter. All asset classes recorded net inflows in the first quarter, with bond funds taking the lead with net sales of €49bn, although the relatively low net sales of equity funds of €9bn highlights an element of investor caution.

Net inflows into money market funds were up from €11bn in the last quarter of 2011 to €22bn in the first quarter of 2012. Total net assets of Ucits increased by 5.8 per cent in the first quarter to €5,961bn at the end of March 2012. Net assets of equity funds increased by 8.5 per cent, while bond funds and balanced funds saw a growth of 5.6 per cent and 4.7 per cent, respectively. Money market funds registered a modest increase in net assets of 1.3 per cent.

Total net assets of non-Ucits increased by 4.2 per cent to €2,401bn at the end of March 2012, an increase mainly driven by special funds reserved to institutional investors, which enjoyed net inflows during the quarter of €31bn.

Ucits assets accounted for 71 per cent of the total investment fund market in Europe, with non-Ucits accounting for the remaining 29 per cent. Combined, the assets grew by 5.3 per cent in the first quarter to €8.362bn at the end of March 2012.

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