Despite this non-Ucits funds saw reduced net sales compared to the previous month, down to €8bn from €9.3bn, while Ucits funds saw inflows increase to €21.7bn from €18.5bn in April.
This represented the fifth consecutive month of net sales in Ucits funds, following seven months of outflows from June to December last year.
Within Ucits fund flows, equity funds saw €12.4bn of redemptions in May, up from -€7.1bn in April and bond funds boosted sales from €16bn a month earlier to €20bn in May, marking the asset class’ sixth consecutive month of inflows.
Meanwhile, in the non-Ucits sector, real estate funds saw no demonstrable change following inflows of €0.2bn in April and special funds, which are available only to institutional investors, saw sales of €5bn, up from €4.6bn a month earlier.
In total, 24 associations representing more than 97% of Ucits and non-Ucits assets provided EFAMA with net sales and net assets data.
Bernard Delbecque, director of economics and research at Efama, said: "Bond funds continued to benefit in May from investors’ search for yield in an environment of low and declining long-term interest rates. This is the continuation of a trend that has started in December 2011 and has remained sustained despite the re-emergence of strong tensions in the euro area sovereign debt markets. These tensions and the ensuing flight to safe-haven and liquid assets also fed the demand for money market funds, to the detriment of investment into equity funds."
Money market funds recorded the seventh consecutive month of net inflows in May of €13bn, compared to €10bn in April.
