European UCITS Funds Continue To Grow

by Ulrika Lomas, Tax-News.com, Brussels

19 October 2009

The latest EFAMA Investment Fund Industry Fact Sheet, published today by the European Fund and Asset Management Association (EFAMA), shows that investor demand for UCITS funds continues to strengthen. August was the second consecutive month this year to show strong inflows to UCITS funds, with UCITS net sales of EUR36bn.

In all, 23 national associations, representing more than 97% of total UCITS and non-UCITS assets at the end of August 2009, provided EFAMA with net fund product sales and net assets data.

The main developments in August in the reporting countries were:

• Investor demand for UCITS remained strong in August, taking in net new money of EUR36bn.
• From January to August 2009 total net sales of UCITS reached EUR128bn.
• Long-term UCITS (UCITS excluding money market funds) increased their net sales to EUR32bn in August, reflecting net inflows into equity, bond and balanced funds. Money market funds also attracted positive net inflows (EUR4bn) in August, albeit at a slower rate than in July (EUR11bn).
• Special funds reserved for institutional investors continued to attract net inflows in August (EUR3bn).
• Total assets of UCITS and non-UCITS increased in August by 1.7%, compared to end of July.
• August was the second consecutive month this year with UCITS net sales exceeding EUR35bn.
• Taking into account net inflows into special funds reserved for institutional investors, European funds enjoyed net inflows of EUR143bn during the opening eight months of the year.

Peter De Proft, Director General of EFAMA, said: “The latest industry data continues the positive trend for allocations to UCITS and non-UCITS funds across Europe. We welcome this, which we regard as the return of investors’ confidence.”

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