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UCITS funds hit with net outflows of EUR29billion in June

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June saw UCITS funds get hit with net outflows of EUR29billion over investor concerns of the continuing economic woes in Europe and the US according to the latest figures released by EFAMA.

June saw UCITS funds get hit with net outflows of EUR29billion over investor concerns of the continuing economic woes in Europe and the US according to the latest figures released by EFAMA. Long-term UCITS attracted EUR7billion as opposed to EUR16billion in May, with equity UCITS shedding EUR2.6billion: a clear signal of risk coming off the table. Bond funds barely attracted any new assets: just EUR0.2billion compared to EUR8.4billion in May. By far the biggest month-on-month reversal was seen in money market UCITS. Whereas they attracted net inflows of EUR5.7billion in May, they suffered substantial net outflows of EUR36billion in June as investors flew to safety and reverted to cash and treasuries. UCITS have so far this year recorded net inflows of EUR44billion. The only real positive to come out of the June carnage was that balanced UCITS saw asset inflows of EUR6billion: up slightly on May’s figure of EUR5billion. Commenting on the June figures, Bernard Delbecque (pictured), EFAMA’s director of economics and research, said: “Uncertainty regarding the strength of the global economic recovery and increasing tensions in the euro area sovereign debt markets undermined investor confidence in June, prompting lower demand for equity and bond funds.”    

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