European UCITS funds suffer dramatic net outflows

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European UCITS funds have reported net outflows of €10bn throughout June, a huge drop compared to net inflows of €41bn in May, according to the latest data presented by the European Fund and Asset Management Association (EFAMA).

The trend was driven by strong outflows in equity funds, with long-term equity funds reporting net outflows of €21n, EFAMA said in a statement released earlier today. Net inflows into bond funds decreased from €14bn in May to €8bn in June and multi asset funds declined from €5bn in May to €2bn in June.

The negative pattern was countered by a significant increase of flows into alternative funds with AIF’s recording net inflows of €24bn, compared to €11bn in May.

Bernard Delbecque, senior director for Economics and Research at EFAMA said: “UCITS equity funds suffered a severe drop in net sales in June due to the uncertainty created by the UK’s Brexit vote. Interestingly, AIF equity funds and practically all AIF categories saw their net sales increase in June.”

Overall, net assets of UCITS decreased by 1.9% to €8,135bn in June, and AIF net assets decreased by 0.1% to €5,224n. Overall, total net assets of European investment funds decreased by 1.2% in June to stand at €13,358bn at the end of the month.

This story originally appeared on International Investment’s sister publication InvestmentEurope, earlier today.