Long-term Ucits funds saw “a sharp decline in demand” last year, according to the European Fund and Asset Management Association.
This type of Ucits funds, which excludes money market funds, suffered €55 billion of outflows, compared with inflows of €290 billion in the year before.
“This reversal started in August when the downgrading of the US government debt and the euro crisis unravelled financial markets,” the association said. These events eventually led to strong withdrawals from equity, bond and balanced funds.
Assets of investment funds in Europe decreased by 2.8% to €7,920 billion. Meanwhile, net assets of Ucits decreased by 6.2 percent to €5,634 billion, having been hit by net outflows of €88 billion during the year.
Non-Ucits funds, on the other hand, saw an increase in assets of 6.8% €2,286 billion.
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