EUROPE - Improving investor confidence sparked €143bn (US$213.1bn) of net inflows to European funds in the first eight months of 2009, with €128bn going into UCITS, research showed.
The European Fund and Asset Management Association (EFAMA) monthly factsheet - compiled using net fund product sales and/or asset data of 97% of Undertakings for Collective Investments in Transferable Securities (UCITS) and non-UCITS - showed demand for UCITS funds has continued to strengthen.
In August alone, UCITS pulled in €36bn in new flows, marking the second straight month of positive flows. Of that, €32bn combined went into equity, bond and balanced funds.
Meanwhile, money market funds - which many investors turned to as a safe haven amid turbulent market conditions - experienced a €7bn decline in growth between July and August, with inflows of €4bn.
Separately, special funds reserved for institutional investors attracted €3bn of investment over the month.
ERAMA director of economics and research Bernard Delbecque said: “I would like to think the fall in growth of investments into money markets – in conjunction with increased interest in equities and low interest rates – confirms a positive shift in investor confidence.”
The top stories this week were the High Court's decision to block the £12bn annuity transfer from Prudential to Rothesay Life, and a separate court ruling that 'raises the bar' for pension rectification exercises.
Guaranteed minimum pension (GMP) equalisation has soared to the top of pension schemes' to-do lists, with 58% stating it is a priority project, research from Equiniti has revealed.
Professional Pensions is holding its defined contribution (DC) conference on 4 September.