tailieunhanh - Trends in the European Investment Fund Industry in the Second Quarter of 2011 and Results for the First Half of 2011

Investors in MMMFs choose these funds because of the stability and liquidity that they provide 22 . This is precisely why these investors are prone to run during a financial crisis when either or both of these product features may be compromised. If investor losses resulted from market events more frequently, it is possible that the investor base and level of interest in the funds today would be very different. But, as this paper shows, such outcomes are not frequent, as even in times when market events would have caused losses to many investors, the voluntary actions of sponsors has negated this. | efama European Fund and Asset Management Association Quarterly Statistical Release August 2011 N 46 This release and other statistical releases are available on efama s website Trends in the European Investment Fund Industry in the Second Quarter of 2011 and Results for the First Half of 2011 This report was prepared by Bernard Delbecque Director of Economics and Research EFAMA The European Fund and Asset Management Association Square de Meeus 18 - B-1050 BRUXELLES - Tel. Fax - e-mail info@ 2 Trends in the UCITS Market Net Sales by Investment Type UCITS attracted EUR 18 billion in net inflows during the second quarter of 2011 compared to EUR 30 billion in the first quarter. This reduction was attributable to a rise in net outflows from money market funds from EUR 9 billion in the first quarter to EUR 30 billion in the second quarter. In contrast total net sales of long-term UCITS increased to EUR 48 billion up from EUR 39 billion in the first quarter with all long-term UCITS categories enjoying increased net sales. Equity funds recorded an increase in net inflows to EUR 8 billion up from EUR 5 billion in the first quarter. Bond funds saw net inflows increasing to EUR 10 billion whilst balanced funds enjoyed net inflows of EUR 23 billion during the quarter. Overall net inflows into UCITS amounted to EUR 48 billion during the first half of 2011 slightly behind the EUR 55 billion recorded in the first half of 2010. Long-term UCITS attracted EUR 87 billion during the first half of the year down from net inflows of EUR 142 billion for the same period in 2010. This reduction reflects the change in investor confidence from a high level at the beginning of 2010 to lower levels in 2011 when a constant stream of events from the Arab uprisings and the Japanese earthquake to renewed concerns about sovereign debt risk caused turbulence on financial markets. 1 Including Ireland for all quarters. 2 Including Ireland from Q1 .