Ucits fund outflows double

Graph_downNet outflows of Ucits funds more than doubled in September, reaching €49 billion, according to the latest statistics, as the eurozone debt crisis escalates.

According to the European Fund and Asset Management Association, long-term Ucits, which exclude money market funds, suffered outflows of €37 billion, compared to €53 billion in August.

While outflows from equity funds fell to €17 billion in September, from €26 billion in August, outflows from bond and balanced funds remained relatively steady, at €12 billion and €10 billion respectively.

Total non-Ucits registered net sales of €5 billion over the same time, down from €8 billion at end August. The association says this drop is owing to a reduction in net inflows to funds reserved to institutional investors.

“A worsening of the euro area sovereign debt crisis amidst weakening economic growth continued to undermine investor confidence in September,” says Bernard Delbecque, the director of economics and research. “At the same time, net outflows from equity funds declined somewhat in September, suggesting resilience from investors despite the global uncertainties.”

Delbecque says investors appear to have put their long term investment decisions on hold, waiting for a clear solution to the euro debt crisis.

©2011 funds europe