Long-term UCITS – excluding money market funds – registered their largest quarterly net inflows since Q1 2006 at EUR152 billion, according to the European Fund and Asset Management Association (EFAMA).
This compares to EUR138 billion of net inflows into long-term funds in Q1 2014.
Demand for bond funds reduced to EUR56 billion from EUR61 billion in the previous quarter, while net inflows to equity funds fell to EUR24 billion, from EUR27 billion.
In contrast, net sales of balanced funds increased during the quarter to EUR53 billion from EUR45 billion in the first quarter.
Money market funds returned to posting net outflows (EUR22 billion) during the quarter, after registering rare net inflows in the first quarter (EUR14 billion).
UCITS net sales remained high at EUR130 billion in the second quarter of 2014, compared to EUR152 billion in the first quarter of the year. This drop is attributable to net outflows from money market funds.
The combined assets of UCITS and non-UCITS increased 4.6 per cent in the second quarter to stand at EUR10,617 billion at end June 2014.
Since end 2013 total net assets of UCITS and non-UCITS have increased 8.4 per cent.
Net assets of UCITS stood at EUR7,464 billion, whilst non-UCITS net assets amounted to EUR3,153 billion.
Overall in the first half of 2014, UCITS recorded net inflows of EUR283 billion, marking a significant increase on the first half of 2013 when net inflows totalled EUR144 billion over the same period. Bond funds experienced the largest net inflows (EUR118 billion), followed by balanced funds (EUR100 billion) and equity funds (EUR51 billion).