- Net inflows went from EUR 52 billion in May.to EUR 14 billion inJune
- UCITS experienced net outflows of EUR 10 billion
- Cyclical end-of-quarter withdrawals of money market funds explain this development
The European Fund and Asset Management Association (EFAMA) in its latest Investment Funds Industry Fact Sheet, which provides net sales of UCITS and non-UCITS for June 2016. 28 associations representing more than 99 percent of total UCITS and AIF assets provided us with net sales data, highlights that:
- Net inflows into UCITS and AIF totaled EUR 14 billion, compared to EUR 52 billion in May.
- UCITS experienced net outflows of EUR 10 billion, down from net inflows of EUR 41 billion in May.
- Long-term UCITS (UCITS excluding money market funds) recorded net outflows of EUR 10 billion, compared to net inflows of EUR 24 billion in May. Equity funds experienced a turnaround in net flows, from net inflows of EUR 3 billion in May to net outflows of EUR 21 billion in June. Net inflows into bond funds decreased from EUR 14 billion in May to EUR 8 billion in June. Multi-asset funds also recorded lower net sales in June: EUR 2 billion compared to EUR 5 billion in May.
- UCITS money market funds experienced net outflows of 0.5 billion in June, compared to net inflows of EUR 17 billion in May. Cyclical end-of-quarter withdrawals of money market funds explain this development.
- AIF recorded net inflows of EUR 24 billion, compared to EUR 11 billion in May, with all AIF categories recording the same or higher levels of net sales.
- Net assets of UCITS decreased by 1.9% to EUR 8,135 billion in June, and AIF net assets decreased by 0.1% to EUR 5,224 billion. Overall, total net assets of European investment funds decreased by 1.2% in June to stand at EUR 13,358 billion at the end of the month.
Bernard Delbecque, Senior director for Economics and Research at EFAMA commented: “UCITS equity funds suffered a severe drop in net sales in June due to the uncertainty created by the UK’s Brexit vote. Interestingly, AIF equity funds and practically all AIF categories saw their net sales increase in June.”