The €12bn drop, revealed today by European Fund and Asset Management Association (EFAMA), was mainly attributable to large net outflows from money market funds, from €9bn in the first quarter to €30bn in the second quarter.
Ucits funds, excluding money market propositions, saw net inflows of €48bn during the quarter, up from €39 billion in the previous quarter, with all long-term Ucits categories benefitting from increased net sales.
“Money market funds experienced the highest asset decrease, falling by 3% followed by equity funds, which fell by 1.2%,” the association said.
The figures revealed total net assets of Ucits funds decreased by 0.5% in the second quarter, dropping to €5,921bn.
“Net inflows into Ucits amounted to €48bn during the first half of the year, slightly behind the €55bn recorded in the same period of 2010,” the association confirmed. “This reduction came on the back of a stream of events from the Arab uprisings and the Japanese earthquake, to concerns about sovereign debt risk, which affected investor confidence.”
Total net assets of non-Ucits funds increased by 1% in the second quarter to reach €2,183bn, while the combined assets of the investment fund market in Europe edged slightly lower in the second quarter to stand at €8,104bn at end of June.
