Ucits funds see largest inflows since 2006

Ucits funds have experienced the largest quarterly net inflows between April and June this year since the first quarter of 2006 as investors shift to balanced funds.

Data released today by the European Fund and Asset Management Association reveals that investors ploughed a total €152bn (£121bn) into long-term Ucits, excluding money market funds, during the second quarter of 2014 compared with €138bn for the previous quarter.

Money Market funds by contrast posted net outflows of €22bn over the quarter after recording what Efama describes as “rare” net inflows of €14bn during the first three months of the year.

The rise in demand for Ucits was driven by sales of balanced funds which increased by close to €10bn over the quarter, with net inflows rising from €45bn to €53bn.

Demand for both equity and bond funds fell during the second quarter, with net sales dropping from €27bn to €24bn and €61bn to €56bn respectively.