Ucits funds suffer outflows

Graph_downUcits funds suffered net outflows of €20 billion in August, up from €14 billion in the previous month, according to the European Fund and Asset Management Association.

There was a large turnaround in inflows into money market funds, which investors used as safe havens. Yet significant outflows from all long-term Ucits categories pulled down the overall number.

Long-term Ucits, excluding money market funds, suffered the highest level of outflows in three years. Bond and balanced funds saw outflows of €13 billion and €11 billion, respectively.

Net sales of equity funds suffered outflows of €26 billion.

Money market funds, on the other hand, benefited from inflows of €33 billion, compared to €25 billion in July.

“August witnessed investors using money market funds as a safe haven, in contrast to events of October 2008 which saw money market funds losing €19 billion of net new money,” the association says.

Assets of Ucits funds totalled €5.6 trillion at the end of August, a 4.7% decline when compared with July

23 associations representing more than 97% of total Ucits and non-Ucits assets provided their sales and asset data for this assessment.

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