Ucits fund sales fall but remain strong

Funds salesThe Ucits funds industry sustained a “very high” level of sales in June, registering €34 billion of net inflows, according to latest available industry figures.

However, sales were halved from the month before, which saw €62 billion of positive net flows.

The European Fund and Asset Management Association (Efama) data also shows that flows into regulated alternative investment funds remained robust, dropping only slightly from €33 billion in May, to €32 billion in June.

Within the Ucits sector, the Efama figures suggest investors ditched equity in favour of bonds. Equity sales fell to €9 billion (from €13 billion in May), while bond funds captured €36 billion (up from €30 billion).

Money market funds saw €33 billion of outflows, potentially reflecting a trend in the UK where retail investors have been exiting cash-based Individual Savings Accounts.

Bernard Delbecque, Efama’s senior director for economics and research, said: “Net sales of long-term Ucits were sustained at a very high level in June, allowing them to total €338 billion in the first half of 2017, compared to €169 billion during the whole of 2016.”

Total net assets of Ucits and regulated alternative funds were €14,964 billion at end June, compared to €15,067 billion in May, but still higher than the €14,141 billion at the end of 2016.

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