Ucits funds recorded net inflows of €22bn in the first three months of 2009, marking the end of a run of six consecutive quarters of overall redemptions, according to the European Fund and Asset Management Association (Efama).
Money market funds were entirely responsible for the positive figure, with net inflows of €52bn offsetting ongoing net redemptions in equity, bond, balanced and other fund classes.
However, outflows in these sectors were dramatically reduced compared to previous quarters. Bond funds saw the biggest turnaround, with outflows of only €4bn in the first quarter of 2009, compared to €70bn in the final three months of 2008.
Financial fears receding
Efama said much of the resurgence in money market funds was down to the fact investors were less concerned about the security of the financial and banking system following government moves to support the sector.
January 2009 even saw positive net inflows in equity and bond funds, though this was followed by two down months for each asset class.
On a country-by-country basis, France experienced the highest positive fund sales of €33bn, while UK investors were responsible for €6.7bn of net inflows. In total, nine countries experienced net positive inflows in Q1.
Italy, Luxembourg and Spain suffered the largest outflows, each losing between €5 and €6bn, according to Efama’s data.
