The European Fund and Asset Management Association, which collates data from 26 associations representing 99.6% of total Ucits and non-Ucits assets in Europe, said net sales of Ucits funds reversed in June from the previous month to record net outflows of €65bn (£55bn, $86bn).
In May Ucits funds saw inflows of €34bn.
EFAMA said one of the main reasons for the large overall outflows from Ucits funds was because of an €18bn net outflow from fixed income funds, although net outflows of €9bn were also recorded from equity funds in June – an increase of €1bn on May’s outflows.
Bernard Delbecque, director of economics and research at EFAMA, said: “Rising long-term interest rates and market expectation that the Federal Reserve will begin tapering its quantitative easing programme before the end of this year fuelled large withdrawals from bond funds in June, and also negatively impacted equity funds.”
Meanwhile, net sales of non-Ucits funds jumped €4bn to €9bn in June. EFAMA said this increase can be attributed to special funds (i.e. funds reserved for institutional investors) which registered net inflows of €8bn, up from €2bn recorded in the previous month.
Total net assets of Ucits stood at €6,559bn at end June 2013, representing a 3.7% decrease during the month. Due to asset depreciation, total net assets of non-Ucits also decreased in June (by 1.8%) to stand at €2,638bn at month end.
BNP Paribas’ chief investment officer, Christian Dargnat, was recently elected as the new president of EFAMA