Long-term Ucits funds reach record inflows

2 June 2010 | By Stefanie Eschenbacher

This is the highest level of net inflows since the first quarter of 2006.

“Investor confidence in market outlook provided the positive backdrop for sustained demand for bond, equity and balanced funds,” EFAMA says.

Ucits funds in total, saw positive net inflows of €49 billion in the first quarter of this year, compared with €1 billion in the fourth quarter of 2009. However, money market funds suffered net outflows of €38 billion, the fourth consecutive quarter of outflows.

EFAMA says investors sought alternative investments to secure higher returns as they faced an environment of very low short-term interest rates.

In terms of monthly net sales, equity, bond and balanced funds have continued to attract positive inflows since April last year, while money market funds have suffered net outflows since September 2009. (article continues below)

“Overall, the monthly figures confirm the rebound of investor confidence that strengthened until the worsening of the Greek crisis in early May,” EFAMA says. 

Some 17 countries reported positive net sales in the first quarter while the southern European countries and France suffered outflows.

The combined assets of the investment fund market in Europe increased by 5.8% to €7,445 billion at end March 2010.