Investor demand for UCITS product is surging, with the funds sector recording net inflows of €54 billion ($75.3 billion) for August 2010, increasing almost elevenfold compared to net inflows of €5 billion in July 2010, according to the European Fund and Asset Management Association’s Investment Fund Industry Fact Sheet.

The rise in inflows reflects the rise in net sales of long-term UCITS (excluding money market funds) and an upturn in net inflows into money market funds, going from €11 billion to €16 billion in August, according to the published fact sheet.

Long-term UCITS vehicles recorded new inflows of €38 billion in August, compared to €16 billion in July, the highest results since EFAMA’s data collection service began in October 2008.

Bond funds contributed strongly to the large rise in long-term UCITS business, with net inflows jumping from €9 billion in July to €23 billion in August; balanced funds also saw their net sales increase in August, says the fact sheet.

On the other hand, investor demand for equity funds weakened, despite positive indicators for economic growth in the eurozone as well as some strong corporate results.

EFAMA is the representative association for the European investment management industry. It represents through its 26 member associations and 44 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 (Undertakings for Collective Investments in Transferable Securities) funds.

The fact sheet is published by EFAMA on a monthly basis and represents net fund product sales and/or net assets data for UCITS and non-UCITS assets provided by 23 national associations.