Net sales of UCITS soared to EUR59 billion in July from EUR22 billion in June, according to the latest European Fund and Asset Management Association’s (EFAMA) Investment Funds Industry Fact Sheet.
A turnaround in the net flows of money market funds was the trigger for this large increase in net sales.
Long-term UCITS (UCITS excluding money market funds) registered net inflows of EUR41 billion, up from EUR37 billion in June.
Net sales of equity funds rose in July to EUR12 billion compared to EUR2 billion in the previous month.
Bond funds also registered an increase in net sales to EUR17 billion, from EUR13 billion.
Balanced funds attracted EUR15 billion compared to EUR18 billion in June.
Money market funds registered a significant turnaround in net flows in July to register net inflows of EUR18 billion, compared to net outflows of EUR15 billion in June.
Total non-UCITS net sales increased to EUR16 billion from EUR8 billion in June, thanks to net sales of special funds (funds reserved to institutional investors), which rose from EUR4 billion to EUR13 billion in July.
Total net assets of UCITS stood at EUR7,618 billion at end July 2014, representing a 1.2 per cent increase during the month. Total net assets of non-UCITS increased 1.0 per cent to stand at EUR3,043 billion at month end. Overall, total net assets of the European investment fund industry stood at EUR10,661 billion at end July 2014.
Bernard Delbecque, director of economics and research, says: “Net sales of long-term UCITS remained robust in July as both equity and bond funds benefited from net inflows despite heightened geopolitical tensions and stock market declines.”