Ucits bonds funds in demand as money market funds report outflows

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Month-on-month inflows into Ucits and AIF vehicles have declined gradually in June with money market funds reporting a sharp decline in demand, according to the latest data provided by European Fund and Asset Management Association (Efama).

According to the association, net  June inflows into Ucits and AIF amounted to €65bn, compared to €95bn the previous month. Ucits alone registered net inflows of €34 bn, down from €62bn in May.

The figures reveal that the key culprit for these weaker results were Ucits compliant money market funds, which reported net outflows of €33bn in June, compared to net inflows of €0.3n in May.

Meanwhile, net sales of equity funds declined slightly to €9bn, compared to €13bn in May. Net sales of bond funds amounted to 36bn, compared to €30bn in May.  Sales of multi-asset funds remained relatively stable at €19bn compared to €17bn the previous month.

AIF recorded net sales of €32bn, a slight decline compared to €33bn recorded in May.

Despite a slight month-on-month deterioration of sales total net assets of Ucits and AIF’s still exceed 2016 levels, marking €14,964bn in June, compared to €14,141bn at the end of 2016.