EFAMA publishes Trends in the European Fund Industry in Q1 2008

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HIGHLIGHTS:

• Net sales of UCITS recorded net outflows of EUR 31 billion in the first quarter of 2008, compared to EUR 60 billion and EUR 40 billion, in the third and fourth quarters of 2007.  An exceptional combination of adverse circumstances led to this outcome.  On the one hand, large stock market price declines led to outflows from equity funds for the fifth consecutive quarter.  On the other hand, bank savings products offering attractive interest rates or some form of guaranteed return continued to reduce the attractiveness of bond funds.  The inflows to money market funds, which totaled EUR 82 billion, marked a reversal from net redemptions experienced in the previous two quarters.

• Whilst the European UCITS industry withstood net redemptions from UCITS in the first quarter of 2008, a number of countries benefited from positive net sales.  Net inflows reversed to positive level in , thanks to renewed appetite for regular money market funds.  Investors continued to add new money into Luxembourg-domiciled funds, albeit significantly less than in recent quarters because of record net outflows from equity and bond funds.  Elsewhere in Europe, , , , and the also experienced positive net sales.

• Whilst the European UCITS industry withstood net redemptions from UCITS in the first quarter of 2008, a number of countries benefited from positive net sales.  Net inflows reversed to positive level in , thanks to renewed appetite for regular money market funds.  Investors continued to add new money into Luxembourg-domiciled funds, albeit significantly less than in recent quarters because of record net outflows from equity and bond funds.  Elsewhere in Europe, , , , and the also experienced positive net sales.

• Total net assets of UCITS fell by 8.0 percent in the first quarter to reach EUR 5,704 billion at end March 2008. All fund categories except money market fund, experienced a fall in assets.

• The combined assets of the investment fund market in Europe , i.e. the market for UCITS and non-UCITS, fell by 7.1 percent in the first quarter to reach EUR 7,380 billion at end March 2008. 

• The combined assets of the investment fund market in Europe , i.e. the market for UCITS and non-UCITS, fell by 7.1 percent in the first quarter to reach EUR 7,380 billion at end March 2008.   

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