The European Fund and Asset Management Association has published its latest Quarterly Statistical Release, which describes trends in the European investment fund industry in the second quarter of 2010.

The highlights for this quarter are:

• UCITS experienced net outflows of EUR 28 billion in the second quarter of 2010, compared to net inflows of EUR 48 billion in the first quarter of 2010.
  

• Long-term UCITS, i.e. UCITS excluding money market funds, benefited from net inflows of EUR 23 billion in the second quarter, down from EUR 86 billion in the first quarter. We believe that investor apprehension in the market caused by the Greek crisis affected investors’ appetite for risk.
  

• Money market fund net outflows increased from EUR 38 billion in the first quarter to EUR 51 billion in the second quarter. This development is thought to be the result of investors’ expectations that short-term interest rates will remain low for the foreseeable future.
  

• Total value of net assets of UCITS decreased by 0.5 percent in the second quarter to reach EUR 5,606 billion at end June 2010. Equity funds experienced the highest asset decrease (EUR 76 billion), followed by money market funds (EUR 45 billion).
  

• Total value of net assets of non-UCITS increased by 2.6 percent in the second quarter to reach EUR 1,888 billion at end June 2010. Assets of special funds reserved for institutional investors increased by 2.3 percent during the second quarter, thanks to continued strong net inflows (EUR 26 billion).
  

• The combined assets of the investment fund market in Europe, i.e. the market for UCITS and non-UCITS, recorded a slight increase of 0.2 percent in the second quarter to reach EUR 7,494 billion at end June 2010.