UCITS funds saw net outflows of €28 billion (around $35.6 billion) in the second quarter of 2010, compared to net inflows of €48 billion in the first quarter, according to a quarterly statistical release from the European Fund and Asset Management Association.

The report, which describes trends in the European investment fund industry, stated that long-term UCITS vehicles (UCITS excluding money market funds) benefited from net inflows of €23 billion in the second quarter, down from €86 billion in the first quarter, a decline that the report attributes to investor apprehension in the market caused by the Greek crisis.

However, money market fund net outflows increased from €38 billion in the first quarter to €51 billion in the second quarter, thought to be the result of investors’ expectations for short-term interest rates to remain low for the foreseeable future.

Overall, the total value of net assets in UCITS products decreased by 0.5 per cent in the second quarter to reach €5,606 billion at the end of June 2010; equity funds experienced the highest asset decrease of €76 billion, followed by money market funds which lost €45 billion.

The combined assets of the investment fund market in Europe, i.e. the market for UCITS and non-UCITS products, recorded a slight increase of 0.2 per cent in the second quarter to reach €7,494 billion at end June 2010. 

The European Fund and Asset Management Association represents, through its 26 member associations and 42 corporate members, approximately €13 trillion in assets under management, of which €7 trillion was managed by approximately 52,000 funds at the end of December 2009. Just under 36,000 of these funds were UCITS products.