According to the European Fund and Asset Management Association, the net inflows into money market funds were outpaced by significant outflows across all the long-term Ucits categories that saw their highest level of net outflows since October 2008.
Ucits funds amounted to €5.56trn at the end of August, a drop of 4.7% since the end of July. This compares to €2.07trn of non-Ucits assets, a 1.3% decline.
Overall, the level of net outflows was €53bn. To put it into context, in the month following Lehman Brothers’ collapse, €111bn of net outflows was reported.
Money market funds recorded net inflows of €33bn compared to net outflows of €25bn in July, with the authors of the EFAMA report saying: “August witnessed investors using money market funds as a safe haven, in contrast to events of October 2008 which saw money market funds losing €19bn of net new money.”
Bonds marked a dramatic turnaround in August to register net outflows of 13bn, balanced funds of €11bn, equity saw record net outflows of €26bn (compared to €1bn in July).