Reversal in fortunes for equity and bond flows

Mixed-chartNet sales of Ucits bond funds leapt in May, while flows into equity funds shrank considerably, according to the latest data from the European Fund and Asset Management Association (Efama).

Bond funds saw net inflows of €8bn, a major improvement on the €1bn of withdrawals posted in April. Equities registered a decline in net flows from €8bn in April to just €1bn in May.

This reversal in fortunes was also noted in the latest data from Lipper, published earlier this week.

Bernard Delbecque, director of economics and research at Efama, said: “Overall, Ucits continued to enjoy robust net sales in May in spite of the escalating sovereign debt crisis. The rebound in fixed income securities amid volatility in the markets highlights a shift in investors’ preference towards less risky assets.”

Ucits funds registered an aggregate €22bn in net sales for the month, and their total assets climbed 1.1% to €5,928bn. Sales of non-Ucits funds dropped to €1bn while assets rose 0.9% to €2,097bn.

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