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Money market outflows drive Ucits assets down

Net inflows into Ucits funds plunged to €18bn (£15.9bn) in the second quarter of 2011.

Money market outflows drive Ucits assets down

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 The €12bn drop, revealed today by European Fund and Asset Management Association (EFAMA), was mainly attributable to large net outflows from money market funds, from €9bn in the first quarter to €30bn in the second quarter.

Ucits funds, excluding money market propositions, saw net inflows of €48bn during the quarter, up from €39 billion in the previous quarter, with all long-term Ucits categories benefitting from increased net sales.

“Money market funds experienced the highest asset decrease, falling by 3% followed by equity funds, which fell by 1.2%,” the association said.

The figures revealed total net assets of Ucits funds decreased by 0.5% in the second quarter, dropping to €5,921bn.

“Net inflows into Ucits amounted to €48bn during the first half of the year, slightly behind the €55bn recorded in the same period of 2010,” the association confirmed. “This reduction came on the back of a stream of events from the Arab uprisings and the Japanese earthquake, to concerns about sovereign debt risk, which affected investor confidence.”

Total net assets of non-Ucits funds increased by 1% in the second quarter to reach €2,183bn, while the combined assets of the investment fund market in Europe edged slightly lower in the second quarter to stand at €8,104bn at end of June.

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