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European Investment Funds Show Strong Start to 2010

European investment funds saw a strong start in 2010, with long-term funds enjoying a monthly level of net inflows unsurpassed in any single month of 2009, according to the Investment Fund Industry Fact Sheet for January, published today by the European Fund and Asset Management Association (EFAMA).

Low returns from money market funds and bank deposits, against the backdrop of a global economy recovering faster than previously anticipated, kept retail and institutional investors searching for higher- yielding investments in January.

23 associations representing more than 97 percent of total UCITS and non-UCITS assets at the end of January 2010 provided EFAMA with net sales and/or net assets data.

The main developments in January in the reporting countries can be summarised as follows:

  • UCITS recorded net inflows of EUR 32 billion in January, compared to net outflows of EUR 12 billion in December 2009. The reversal reflected a sharp increase in net inflows into long-term UCITS (UCITS excluding money market funds) from EUR 18 billion in December to EUR 35 billion in January, and a slowdown in net outflows from money market funds, from EUR 29 billion in December to EUR 3 billion in January.
  • Bond funds were the primary attractors of net inflows into long-term UCITS, taking an estimated EUR 15 billion in January, compared to EUR 2 billion in December. Balanced funds also experienced a rise in net inflows, from EUR 6 billion in December to EUR 11 billion in January. Meanwhile, inflows into equity funds remained stable at EUR 8 billion.
  • Net inflows into special funds reserved to institutional investors continued to attract strong inflows in January (EUR 17 billion, compared to EUR 11 billion).
  • Total assets of UCITS and non-UCITS increased by 1.2 percent in January, compared to end December.

via Efama – Document Details | Monthly Industry Fact Sheet (January 2010).

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