Net outflows for UCITS funds were recorded in June due to a challenging market and political environment, the European Fund and Asset Management Association (EFAMA) revealed.
UCITS recorded net outflows of €25 billion, compared to an outflow of €9 billion in May, EFAMA found in its latest investment funds industry fact sheet.
Meanwhile, net sales of UCITS and AIFs remained in negative territory in June, with net outflows reaching €22 billion, compared to €2 billion in May.
Additionally, long-term UCITS recorded net outflows of €4 billion, a level similar to that observed in May, which was recorded at €3 billion.
Further highlights from the fact sheet found that equity funds registered negative net sales amounting to €3 billion in June, compared to €4 billion in May.
Bond funds sales also remained negative, with net outflows of €6 billion, compared to €8 billion in May, and multi-asset funds continued to record net inflows in June: €7 billion, compared to €9 billion in May.
EFAMA also found that net sales of AIFs recorded net inflows of €3 billion, down from the amount in May, which stood at €8 billion.
It was also reported that total net assets of UCITS and AIFs fell by 1.1 percent in June to €15,854 billion, compared to €16,037 billion at the end of the month prior.
Bernard Delbecque, director of economics and research, commented: “Despite the downturn in net sales observed in May and June, UCITS saw net inflows of €186 billion in the first six months of 2018.”
He added: “Still, this level is significantly lower than what was observed during the first half of 2017 (€376 billion).”
Delbecque concluded: “Two main reasons can explain this outcome: firstly, 2017 was truly an outstanding year in terms of net sales of UCITS, and secondly, the challenging market and political environment that has developed in recent months has undermined investor confidence.”
