Brexit outflows see Europe’s investment fund assets fall to €13trn

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Uncertainty surrounding the UK’s vote to leave the European Union has been blamed for €10bn of net outflows from long-term Ucits funds in June, according to figures from the European Fund and Asset Management Association.

Overall net assets of European investment funds decreased by 1.2 per cent to stand at €13.4trn at the end of the month of June. Ucits net assets decreased 1.9 per cent to €8.1trn, while AIF net assets decreased by 0.1 per cent to €5.2trn.

Equity funds saw a ‘severe drop’ in June, when €21bn exited the asset class, compared to inflows of €3bn the previous month.

Inflows to bond funds slowed to €8bn in June, compared to €14bn in May, while inflows to multi-asset funds more than halved to €2bn compared to €5bn the previous month.

In contrast, AIF saw net inflows of €24bn compared to €11bn in May with all categories recording the same or higher levels of net sales.

Bernard Delbecque, senior director for economics and research at EFAMA, attributed the “severe drop” in Ucits equity fund flows was due to the uncertainty created by the UK’s Brexit vote.