The measures decided to strengthen the euro area and help member countries in difficulties contributed to improve investor confidence in June, leading to a sharp reduction in the outflows from long-term UCITS.

UCITS recorded net outflows of EUR 31 billion in June, compared to net outflows of EUR 23 billion in May.  This development was spurred by a sharp rise in net withdrawals from money market funds from EUR 14 billion in May to EUR 31 billion in June, reflecting the normal trend of redemptions taking place at the end of each quarter.

Long-term UCITS (UCITS excluding money market funds) experienced net outflows for a second month in a row, albeit significantly less severe than in May (0.2 billion compared to EUR 8 billion). The main reason for this positive outcome was a sharp decline in the net outflows from equity funds, from EUR 11 billion in May to EUR 2 billion.

Bond funds also recorded net outflows in June (EUR 3 billion, compared to EUR 2 billion in May). Balanced funds continued to attract new money in June (EUR 3 billion), whilst special funds reserved to institutional investors jumped to record net inflows of EUR 12 billion in June.

Total UCITS fell by 0.4 percent in June compared to end May, whilst total non-UCITS rose 1.0 percent in June.

23 associations representing more than 97 percent of total UCITS and non-UCITS assets at end June 2010 provided us with net sales and/or net assets data.

 The eurozone’s sovereign debt crisis and its risk to economic recovery created apprehension in the market in May, thereby affecting investors’ appetite for risk. However, total net outflows from long-term UCITS remained modest in terms of total long-term UCITS assets (0.2 percent). For the first five months of 2010, long-term UCITS enjoyed net inflows of EUR 108 billion.

The main developments in May in the reporting countries can be summarized as follows:

• UCITS suffered negative net outflows of EUR 23 billion in May.

• For the first time since March 2009, long-term UCITS (UCITS excluding money market funds) experienced net outflows in May, totaling EUR 8 billion.

• Also for the first time since March 2009, equity and bond funds recorded net outflows (EUR 11 billion and EUR 2 billion, respectively), reflecting investor fear over sovereign debt problems in Europe and the risk of contagion to the global economy.  Balanced funds and special funds reserved to institutional investors continued to attract new money in May, though (EUR 3 billion and EUR 4 billion).

• Despite renewed financial market volatility, outflows from money market funds rose to EUR 14 billion, from EUR 7 billion in April.

• Total assets of UCITS and non-UCITS fell by 0.7 percent in May compared to end April.

23 associations representing more than 97 percent of total UCITS and non-UCITS assets at end May 2010 provided us with net sales and/or net assets data.

Demand for long-term funds continues throughout April 2010, with a significant shift from Equities to Corporate Bonds.

The latest Investment Fund Industry Fact Sheet for April, published by EFAMA, shows a continuing trend of investors' strong demand for long-term funds, a shift in investor sentiment away from equities towards bonds and balanced funds, and a continuing trend of exiting money market funds.

The main developments in April in the reporting countries can be summarised as follows:

• The trend observed since September 2009 continued in April, with sustained demand for long-term funds and capital outflows from money market funds.  UCITS enjoyed positive net inflows of EUR 20 billion in April, and net inflows for the first four months of 2010 amounted to EUR116 billion.

• Net inflows into long-term UCITS (UCITS excluding money market funds) remained strong in April, totalling EUR 27 billion - the same level as in March.

• The split of new money between the different types of long-term UCITS differed very much in April from recent months.  For the first time since March 2009, net inflows into equity funds fell to almost zero (EUR 230 million in April against EUR 8 billion for March), reflecting investor concern over the Greek debt crisis and the economic consequences for Europe.  Bond funds were the largest-selling funds (EUR 15 billion), with corporate bond funds being considered by many investors to be lower risk than equity investments and some sovereign bonds.  Balanced funds continued also to attract net inflows (EUR 9 billion in April compared to EUR 6 billion in March).

• Outflows from money market funds slowed down to EUR 7 billion, from EUR 19 billion in March.  Lower cash need on the part of money market funds investors at the beginning of each quarter contribute to explain this development.

• Net inflows into special funds reserved to institutional investors fell marginally to EUR 6 billion in April, from EUR 7 billion in March.

• Total assets of UCITS and non-UCITS increased by 1.4 percent in April compared to end March.

23 national associations representing more than 97 percent of total UCITS and non-UCITS assets at the end of April 2010 provided net sales and/or net assets data to EFAMA for the fact sheet.

Demand for long-term funds continues throughout March 2010 and outflows from money markets funds increase

The latest Investment Fund Industry Fact Sheet for March, published today by the European Fund and Asset Management Association (EFAMA), shows a continuing trend of investors' strong demand for long-term funds and their gradual exit from money market funds.

The main developments in March in the reporting countries can be summarised as follows:

• •The trend observed since September 2009 continued in March, with sustained demand for long-term funds and capital outflows from money market funds.  For the first three months of 2010, UCITS and non-UCITS enjoyed net inflows of EUR 89 billion.
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• •Net inflows into long-term UCITS (UCITS excluding money market funds) remained strong in March, totaling EUR 26 billion compared to EUR 28 billion in February.  
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• •Money market funds continued to suffer from net outflows (EUR 18 billion) for the seventh consecutive month.  Reflecting the combined effect of these trends, net inflows into UCITS slowed down to EUR 8 billion in March, compared to EUR 12 billion in February.
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• •Among long-term UCITS, bond funds led the sales ranking, collecting EUR 13 billion in net new inflows.  Equity and balanced funds ranked second and third, with net inflows of EUR 8 billion and EUR 6 billion, respectively. 
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• •Net inflows into special funds reserved to institutional investors rose to EUR 8 billion in March, from EUR 6 billion in February.
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• • Total assets of UCITS and non-UCITS increased by 3.6 percent in March thanks to strong price appreciation on both stock and fixed-income markets.

• 23 national associations representing more than 97 percent of total UCITS and non-UCITS assets at the end March 2010 provided net sales and/or net assets data to EFAMA for the fact sheet.

Net Inflows of EUR 28 billion into long-term European Investment Funds in February

The latest Investment Fund Industry Fact Sheet for February, published today by the European Fund and Asset Management Association (EFAMA), shows a continuing trend of investors’ strong demand for long-term funds and their gradual exit from money market funds.

Over the last six months, long-term UCITS attracted EUR 148 billion, whereas net outflows from money market funds totalled EUR 103 billion.

The main developments in February in the reporting countries can be summarised as follows:

•Net inflows into long-term UCITS (UCITS excluding money market funds) remained strong in February, totalling EUR 28 billion, compared to EUR 35 billion in January and an average of EUR 24 billion in the second half of 2009.

•Money market funds suffered net outflows (EUR 16 billion) for the sixth consecutive month.

•Reflecting the combined effect of these trends, total net inflows into UCITS slowed down to EUR 12 billion in February, compared to EUR 32 billion in January.

•Among long-term UCITS, bond funds led the sales ranking, gathering EUR 15 billion in net new money – the same level as in January.  Balanced and equity funds ranked second and third, with net inflows of EUR 7 billion and EUR 5 billion respectively.

•Net inflows into special funds reserved for institutional investors fell to EUR 6 billion in February, compared to EUR 17 billion in January.

• Total assets of UCITS and non-UCITS funds increased by 1.1 percent in February, compared with the value of assets by end of January.

23 national associations representing more than 97 percent of total UCITS and non-UCITS assets at the end of February 2010 provided net sales and/or net assets data to EFAMA for the fact sheet.