Investor confidence boosts Ucits sales

Thumbs_up_hopeThe European Central Bank’s (ECB) attempt to bolster eurozone banks prompted positive flows into asset managers’ Ucits funds in the first quarter of the year.

Figures from the European Fund and Asset Management Association (Efama) show €91 billion flowed into the funds compared to €50 billion of outflows in the last quarter of 2011.

The ECB implemented the long-term refinancing operation (LTRO) late last year to help ease the eurozone crisis, which Efama says underpinned the positive fund flows by alleviating fears.

Ucits excluding money market funds saw inflows of €70 billion. However, there were still relatively low net sales of equities - €9 billion compared to €49 billion for bonds.

Flows to money market funds also doubled from €11 billion in Q4 2011 to €22 billion in Q1.

Total net assets of Ucits increased by 5.8% in the quarter to stand at €5,961 billion at end March.

©2012 funds europe