EFAMA: Net sales figures for UCITS showed mixed signals in October
12 December 2011
On the one hand, UCITS saw reduced net outflows, as expectations of conclusive plans to resolve the sovereign debt crisis provided hope to investors. On the other hand, net withdrawals remained at high level with all categories affected, as uncertainty lingered and economic outlook deteriorated.
The main developments in October 2011 in the reporting countries can be summarised as follows:
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UCITS continued to register net outflows in October, reflecting exits from long-term UCITS and money market funds. Total net outflows of €30 billion in October were lower than in September (€49 billion).
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Long-term UCITS (UCITS excluding money market funds) witnessed lower net outflows in October: €19 billion compared to €37 billion in September and €55 billion in August.
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Net outflows from equity funds more than halved to €8 billion from €17 billion in September and €27 billion in August.
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Net outflows from bond funds also reduced considerably during the month registering net outflows, from €12 billion in September to €5 billion in October.
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Balanced funds also saw net outflows half during the month to €5 billion from €10 billion in September.
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Money market funds registered a modest reduction in net outflows in October, from €12 billion in September to €10 billion in October, as banks continued to compete with money market funds to attract investors into deposits.
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Total non-UCITS net sales increased during October to €7 billion, compared to €5 billion at end September. This was attributable to an increase in net inflows to special funds (funds reserved to institutional investors).
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Total assets of UCITS increased by 2.2 per cent in October to €5,487 billion, following the rebound in stock market prices.
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Total assets of non-UCITS enjoyed an increase of 1.0 per cent in October to stand at €2,130 billion.
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.”
Press release
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