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European fund sales continue to slow

From News Aug 25 2011 BY: Dylan Emery , Editorial Director , Last Word Media

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Investors across Europe are slowly turning off the taps on equity and bond fund buying, according to the European Fund and Asset Management Association.

Leaving money market funds aside, total flows into Ucits funds sank to €7bn, down from €21bn in April and €16bn in May. This splits out into net outflows in equity funds, small net inflows in balanced funds and bond funds (see table below for details).

Meanwhile, on the money market side, things are much more extreme. June showed a sharp sell off - total outflows were €36bn in June, swamping all the statistics and bringing the total size of assets in mutual funds down by €20.6bn across the month.

On the positive side, sales were up for non-Ucits funds, particularly 'Special' funds, which are reserved for institutional investors. They showed inflows of €5.9bn, up from last month, although still down from the previous 12-month trend.

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