Net inflows into Ucits funds rose to €24 billion in August, up from €6 billion the prior month, according to the European Fund and Asset Management Association (EFAMA).
The increase was caused by a turnaround in money market funds, rather than long-term investment products. Excluding money market funds, net inflows fell from €25 billion in July to €13 billion in August.
Net inflows into bond funds were strong at €18 billion in August, though this was a decline from €24 billion the previous month. Meanwhile, money continued to flow out of equity products, and at a faster rate: Net outflows for equity funds in August were €10 billion, compared with €3 billion the prior month.
“The ECB’s commitment ‘to do whatever it takes’ to preserve the euro assuaged investor concerns during August, which supported net inflows to bond funds,” said Bernard Delbecque, director of economics and research at EFAMA. “However, investors continued to shy away from equity funds in the midst of mixed signals about the global economic outlook.”
©2012 funds europe
