Falling sales of equity funds dampen Ucits sales during August

Crashing downNet sales of equity funds fell dramatically during August, reducing the overall sales of Ucits funds for the summer month.

Equity fund sales only broke even during August, with net inflows plummeting to €0.3 billion compared €12 billion in July, according to a monthly investment funds industry fact sheet from the European Fund and Asset Management Association (EFAMA).

As a result, net sales of Ucits fell to €38 billion in August, from €59 billion in July. This drop was also influenced by reduced sales of money market funds during the month, which fell by more than half to €8.7 billion from €17.9 billion in the previous month.

Long-term Ucits (excluding money market funds) also saw a reduction in inflows, dipping to €29 billion, from €41 billion in July.

Bond funds and balanced funds both registered a slight decrease in net sales for the month, with bond funds flows decreasing by €2 billion to €15 billion, and balanced funds by €4 billion to €11 billion.

'Other' Ucits sales increased, from outflows of €2.4 billion in July to €2.1 billion inflows in August.

Overall, total net assets of Ucits stood at €7,769 billion at the end August, representing a 2% increase during the month.

Total net assets of non-Ucits increased 1.2% to €3,081 billion, meaning total net assets of the European investment fund industry stood at €10,850 billion at the end of August.

Bernard Delbecque, EFAMA director of economics and research, says: "Net sales of equity funds fell to break-even level in August on the back of a subdued global growth outlook and geopolitical uncertainties."

Figures for net sales and/or net assets were provided to EFAMA by 27 associations, representing more than 99% of total Ucits and non-Ucits assets at the end of August 2014.

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