Sales of UCITS posted net outflows of EUR17 billion in June, compared to net inflows of EUR36 billion in May, according to the latest investment funds factsheet from the European Fund and Asset Management Association (EFAMA).
This turnaround in net flows can be attributed to large net withdrawals from money market funds during the month.
Long-term UCITS (UCITS excluding money market funds) registered reduced net inflows of EUR18 billion, down from EUR51 billion in May.
Bond funds experienced a turnaround in net flows posting outflows of EUR7 billion, compared to net inflows of EUR9 billion in May.
Net sales of balanced funds halved in June to EUR15 billion. In contrast, equity funds enjoyed increased net sales totalling EUR7 billion, up from EUR5 billion in May. Money market funds experienced a sharp increase in net outflows in June (EUR35 billion), up from EUR15 billion in May. The large net outflow seen in June reflects the cyclical pattern of flows out of money market funds at the end of each quarter. Total non-UCITS net sales amounted to EUR19 billion in June, down from EUR21 billion in May. Net sales of special funds (funds reserved to institutional investors) registered EUR17 billion, being slightly higher than in May (EUR16 billion). Net assets of UCITS stood at EUR8,907 billion at end June 2015, representing a decrease of 2.7 percent during the month, whilst net assets of non-UCITS decreased by 1.1 percent to stand at EUR3,548 billion at month end. Overall, total net assets of the European investment fund industry fell by 2.3 percent to stand at EUR12,454 billion at end June 2015. Bernard Delbecque , Director of Economics and Research, says: “Fixed income funds suffered in June as rising long-term interest rates made these fund types less attractive