“Mixed signals” in European fund sales statistics

Mixed_signalsOctober’s net retail sales statistics for Ucits funds show “mixed signals”, according to the European Fund and Asset Management Association (Efama), with reduced outflows but withdrawals by high-net-worth investors.

Net outflows from long-term Ucits, which exclude money market funds, totalled €30 billion in October, down from €49 billion in the previous month.

Equity funds saw a drop of net retail sales to €8 billion while net outflows from bond funds and balanced funds both fell to €5 billion respectively.

Total non-Ucits net sales rose to €7 billion, up from €5 billion in the previous month. Efama says special funds reserved to institutional investors took those inflows.

Meanwhile, total assets of Ucits increased by 2.2% to nearly €5.5 trillion as stockmarket prices rebounded.

“On the one hand, Ucits saw reduced net outflows as expectations of a conclusive plan to resolve the sovereign debt crisis provided some hope to investors,” says Bernard Delbecque, Efama's director of economics and research. “On the other hand, net withdrawals remained at a high level with all categories affected, as uncertainty lingered and the economic outlook deteriorated”.

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