European investors redeem €100bn net in past calendar year
From Europe Feb 14 2012 BY: Gary Corcoran
, Group Editor
, Portfolio Adviser and International Adviser
The trend of net monthly Ucits fund outflows amounting to billions of euros in the past calendar year lessened towards the end of 2011, with bond funds seeing net inflows in December for the first time since the summer.
In the final month of last year, bond funds saw net inflows of €4bn, the first positive figure since July. This compares with net outflows of €10.8bn in November, contributing to €19.1bn of outflows for the full year.
Equity funds, on the other hand, continued to see outflows, though the speed with which investors redeemed their cash lessened as the second half of 2011 progressed.
In November, there were net outflows of €16bn that dropped to just €6bn in December. At the end of the year, however, €62.6bn was the total figure for net outflows from Ucits equity funds.
Bernard Delbecque, director of economics and research at EFAMA, commented: “2011 was a year of two halves for investment funds. Despite negative surprises, in particular the earthquake in Japan and the tensions in oil prices, Ucits continued to attract net new money during the first half of the year.
“The second half was dominated by the intensification of the eurozone sovereign debt crisis and the worsening of the global economic outlook, which triggered a strong resurgence in risk aversion and a sharp fall in the demand for long-term Ucits.
“On the other hand, special funds managed to attract net new money throughout the whole year, as insurance companies, pension funds and other institutional investors continued to use these vehicles to invest the recurrent contributions collected from their members.”
2011 Summary:
- Ucits recorded net outflows of €90bn, compared with net inflows of €172bn in 2010
- Long-term Ucits recorded net outflows of €57bn compared with net inflows of €297bn in 2010
- Money market funds suffered net outflows of €33bn (€125bn in 2010)
- Non-Ucits recorded net inflows of €104bn (€164bn in 2010)
- Special funds enjoyed net inflows of €93bn (€144bn in 2010)
- Overall, Ucits and non-Ucits witnessed net inflows of €13bn (€335bn in 2010)