Equity funds see best inflows for two years

growthEquity funds attracted their highest level of monthly net inflows in December 2012 since January 2011.

Figures released today for Ucits funds show €14 billion flowed into equity funds. This was also an increase on the month before by €1 billion.

The European Fund and Asset Management Association (Efama), which released the figures, says the positive flows were connected to an increase in optimism for the economic outlook.

However, bond funds continued to record strong net inflows in December, albeit less than in November:  €14 billion compared to €1 billion.  

Large net outflows of money market funds meant that net inflows into total Ucits amounted to €1 billion in December compared to €38 billion in November.   

Total net assets of Ucits increased 0.5% in December to €6.35 trillion.

The figures are based on 26 industry associations representing more than 99.6% of total Ucits and non-Ucits assets at end December 2012.

Peter de Proft, director general at Efama, says: “2012 was a good year for the European investment fund industry and its clients, thanks to improved financial market conditions. 

“The strong demand for Ucits may be attributed to the decisive policy measures taken by the ECB [European Central Bank] and its commitment to do ‘whatever it takes’ to save the euro.”

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