June fund flows hit as uncertainty strikes again

Empty-pocketEuropean Ucits fund sales were back in the red again in June, recording €29bn of outflows, their worst in a year.

Cyclical withdrawals from money market funds totalling €36bn were the main culprit. Weak flows of €7bn into long-term Ucits funds were less than half of May’s figure and only a third of April’s, according to the latest data from the European Fund and Asset Management Association (EFAMA).

The inflows were propped up almost exclusively by balanced funds, while bonds eked out sales of just €0.2bn and equities sagged into negative territory by €2.6bn.

Bernard Delbecque, director of economics and research at EFAMA, said: “Uncertainty regarding the strength of the global economic recovery and increasing tensions in the euro area sovereign debt markets undermined confidence in June, prompting lower demand for equity and bond funds.”

Total net assets of Ucits funds ended the month 2% lower than in May to stand at €5,809bn.

Non-Ucits funds, on the other hand, enjoyed boosted sales of €9bn in June but still saw net assets decrease by 0.5% to €2,087bn.

EFAMA compiles data from 23 associations representing more than 97% of total European Ucits and non-Ucits assets.

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