EFAMA publishes its latest Quarterly Statistical Release for Q4 2007 and Results for 2007

This positive development could be achieved despite net outflows from UCITS in the third and fourth quarters of 2007, which reflected heightened risk aversion among European investors.

The high concentration of net inflows in funds domiciled in (EUR 188 billion) and (EUR 80 billion) highlights the success of UCITS as a global brand and the growth of the fund business in Asia .

Money market “enhanced” and “dynamic” funds suffered from concerns about the risk exposure of these funds to asset backed securities, as investors reassessed their portfolio composition in light of the credit crisis in the second half of 2007.

Enhanced competition from banking deposits and structured products against the background of rising interest rates continued to be felt strongly throughout Europe, with Italy being the most severely hit.

The demand for balanced funds remained strong throughout Europe .  Funds of hedge funds, especially in , and , and special funds reserved for institutional investors, especially in , , and the , recorded substantial inflows.

OUTLOOK FOR 2008 AND THE MEDIUM TERM

As regards the medium-term, unwinding of flight-to-safety portfolio shifts in response to greater investor confidence should trigger renewed demand for equity and bond funds.

Assuming Asian economies continue to expand at a steady rate, UCITS should continue to attract strong net inflows from Asia , as investors there are still in the early phases of diversifying their savings into investment funds.

In terms of regulation, closing the gap between UCITS and other less regulated savings products both at the point of sale and at production level, and removing the sources of inefficiencies in the UCITS Directive, would strengthen the foundations for the continued success of UCITS in the future.