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UCITS suffer EUR30billion net outflows in October says EFAMA

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According to the European Fund and Asset Management Association’s (EFAMA) latest fact sheet on the UCITS fund industry, net sales for UCITS were a distinctly mixed bag for October.

According to the European Fund and Asset Management Association’s (EFAMA) latest fact sheet on the UCITS fund industry, net sales for UCITS were a distinctly mixed bag for October. Net outflows totalled EUR30billion, reflecting investor exits from long-term UCITS and money market funds, no doubt in response to lingering risks over the health of the eurozone. On the flipside, however, these figures signaled a marked improvement on September when net outflows totalled EUR49billion. Equity UCITS shed EUR7.5billion in October, faring much better than September and August when extreme market volatility saw net equity outflows of EUR17billion and EUR27billion respectively. Total long-term UCITS outflows for October were EUR19billion compared to EUR37billion for September and EUR55billion in August. Like equities, month-on-month net outflows for bond UCITS also improved, falling from EUR12billion to EUR5billion. However, UCITS total net assets in October actually increased by 2.2 per cent to EUR5.487trillion due to an uptick in stock market prices.

Commenting on the results, Bernard Delbecque (pictured), director of economics and research at EFAMA acknowledged that the net sales figures showed “mixed signals”. “On the one hand, UCITS saw reduced net outflows as expectations of a conclusive plan to resolve the sovereign debt crisis provided some hope to investors. On the other hand, net withdrawals remained at a high level with all categories affected, as uncertainty lingered and the economic outlook deteriorated,” said Delbecque. Net outflows for 2011 through October now stand at EUR75billion.

 

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