The latest quarterly statistical release by EFAMA for Q3 found that UCITS enjoyed a healthy positive inflow of EUR46billion, in marked contrast to Q2, which saw net outflows total EUR28billion. The strong inflows meant that total net assets gained +3 per cent for Q3, bringing them to EUR5,777billion as of end-September. According to the report, all long-term UCITS classes locked in net inflows of EUR62billion for the quarter, suggesting improved investor appetite had returned to the market. This figure was up from EUR23billion recorded in Q2, but year-on-year it was markedly down (Q3 2009 having recorded inflows of EUR122billion). The major cause for this was money market funds. They experienced net outflows for the sixth consecutive quarter, losing EUR15.8billion in Q3; equivalent to a YTD loss of EUR105billion. Last year, however, they were in positive territory: EUR18billion.
The biggest inflows recorded across Europe were for Bond funds, locking in EUR37billion and bringing them to EUR86billion YTD. Balanced funds also did well, attracting inflows of EUR12.7billion. Overall, total inflows for Q3 were EUR46billion, putting them at EUR66billion YTD. The report found, geographically, that four countries reported net sales of UCITS in excess of EUR1billion for Q3. These included: Luxembourg (EUR42billion), United Kingdom (EUR19billion), Switzerland (EUR4.6billion) and Germany (EUR2.8billion). Whilst two countries, conversely, recorded net outflows in excess of EUR1billion: Spain (EUR4.1billion) and Italy (EUR4billion). For Spain in particular, investors’ flight to safety to jurisdictions like Luxembourg was no doubt a response to the country’s ongoing sovereign debt issues.
The report also found that the number of UCITS, as of end-September, had reached 36,077 compared to 36,025 recorded end-June 2010.