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Ucits volumes fall in May
12 July 2013
Declining appetite for bond funds leads weaker inflows
Sales of Ucits assets were lower in May than April, according to the latest data from the European Fund and Asset Management Association (EFAMA).
EFAMA's Investment Fund Industry Fact Sheet, which details investment sales and asset data for May 2013 and covers more than 99.6% of total Ucits and non-Ucits, shows net sales of Ucits in May totalled €34bn, down from €44bn in April.
EFAMA said the decline was primarily a result of a fall in sales of bond funds, which fell from record inflows €30bn in April to €21bn in May, while sales of equity funds saw outflows of €1bn in May, versus inflows of €1bn in April.
Similarly, sales of long-term Ucits funds - Ucits excluding money market funds – were €10bn down from April volumes, with net sales €39bn compared to €49bn the previous month.
Bernard Delbecque, director of economics and research at EFAMA, said: “Bond and balanced funds continued to attract strong net inflows in May, reflecting market expectations of lower interest rates and the importance given by investors to the broad asset diversification provided by balanced funds.”
EFAMA's figures also showed a sharp fall in net sales of non-Ucits funds in the month, with net inflows declining to €5bn from €20bn. This drop in demand was attributed largely to declining investor appetite among institutional investors, which saw inflows to institutional investor-only special funds fall from €18bn to €2bn.
EFAMA said total net assets across Ucits and non-Ucits rose slightly to €9.5trn by the end of May.