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Investors continue to pile into Ucits funds as confidence returns

Net inflows into Europe-domiciled Ucits funds reached 38bn in July, contributing a 4% rise in Ucits and non Ucits assets over the month, according to the European Fund and Asset Management Associatio

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Net inflows into Europe-domiciled Ucits funds reached €38bn in July, contributing a 4% rise in Ucits and non Ucits assets over the month, according to the European Fund and Asset Management Association (Efama).

Based on fund flows in 26 countries, Efama’s figures showed total net assets in Ucits funds increased by 7.4% in the second quarter of 2009 to reach €4788bn at end June and continued to rise throughout the following month.

Jean-Baptiste de Franssu, Efama president, said of the figures: “The latest industry data is encouraging and serves to demonstrate that the fund and asset management industry is viewed by the investment community as a potential solution towards finding a way through the current economic challenges.”

Efama said Ucits funds recorded net inflows of €30bn during the second quarter of 2009, the second positive quarter in a row, following a lengthy period of redemptions.

Assets in the non-UCITS market increased 4.2 percent in the second quarter of 2009 to €1590bn.  Efama said Almost 65% of the increase was due to a rise in the assets of special funds reserved for institutional investors, which mainly reflected asset appreciation.

Other highlights from the figures showed that net inflows into equity, bond and balanced funds reached €60bn in the second quarter, compared to net outflows of €18bn in the first quarter.

According to Efama, the majority of countries recorded positive net sales in the first quarter of 2009.  Inflows were particularly strong in the second quarter in Luxembourg (€10bn), the UK (€9.1bn) and Switzerland (€8.7bn).  

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