A steep reduction in net sales of long-term UCITS (UCITS excluding money market funds) was the main trigger of the fall in net sales of UCITS during the month.
April figures from the European Fund & Asset Managers Association (EFAMA) show while net sales of UCITS remained positive in April totalling EUR 18 billion, they were down from net inflows of EUR 47 billion in March.
Net sales of long-term UCITS reduced in April to EUR 8 billion, compared to EUR 32 billion in March. Equity funds witnessed net outflows of EUR 8 billion during the month. Also experiencing net outflows was the balanced fund sector, with net outflows of EUR 3 billion.
Commenting on the figures, Bernard Delbecque, Director of Economics and Research at EFAMA, said:
“The decline in the net sales of UCITS in April reflected, among other factors, investors’ lingering concerns about the growth and fiscal issues in the Eurozone and the relating market risks and political uncertainty.”
The flight to safety saw bond funds recording net inflows during the month of EUR 16 billion, albeit down from EUR 26 billion in March.
In addition, money Market funds continued to experience net inflows in April of EUR 10 billion, compared to EUR 15 billion in March. April marked the sixth straight month of net inflows into money market funds.
Total assets of UCITS increased 0.5 percent in April to stand at EUR 5,895 billion, whilst total assets of non-UCITS increased by 0.8 percent to EUR 2,306 billion at month end. Total assets of UCITS and non-UCITS stood at EUR 8,201 billion at end April 2012.
The forces at play in investment - most obviously, regulatory change, uncertain markets and shifting demographics - are as strong today as they were when Professional Adviser launched its sister magazine Multi-Asset Review in 2017.
Regulator has visited some firms already
Platforms react to Fidelity blocking Income Focus purchases
Chris Hill's letter to Treasury
Cash balance surges