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European bond funds’ February turmoil

Euro bondsEuropean bond fund sales dived amid February market turmoil, according to data from the European Fund and Asset Management Association (Efama).

Net sales of bond funds were €4 billion, down from €20 billion in January.

The data from 28 associations representing 98 percent of total Ucits and alternative investment funds also showed that net sales of equity funds totalled €25 billion, down from €48 billion in January.

Net sales of Ucits and alternative investment funds were €25 billion, down from €142 billion in January, while Ucits funds alone registered net sales of €11 billion, down from €126 billion in January.

Long-term Ucits funds posted net sales of €47 billion, up from €88 billion in January 2018.

Net sales of multi-asset funds totalled €16 billion, down from €17 billion in January.

Ucits money market funds recorded net outflows of €35 billion, compared to net inflows of €38 billion in January.

Alternative investment funds recorded net sales of €13 billion, down from €16 billion in January.

Bernard Delbecque, director of economics and research at Efama, said: “The turmoil on the markets in February had a strong impact on Ucits bond funds, which saw their net sales falling sharply, whereas investor demand for Ucits equity funds remained relatively strong.”

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