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 third quarter of 2010.

The highlights for this quarter are:

• UCITS recorded positive inflows in the third quarter amounting to EUR 46 billion, after recording net outflows in the second quarter of EUR 28 billion.
  

• Net inflows into long-term UCITS, i.e. UCITS excluding money market funds, totalled EUR 62 billion, up from inflows of EUR 23 billion in the second quarter, with bond funds recording strong net sales (EUR 37 billion). Equity funds returned to positive inflows during the third quarter, enjoying inflows of EUR 4 billion, up from net outflows of EUR 12 billion during the second quarter. Still, investors remained cautious about equity exposure during the whole quarter, on the back of growing concerns of a sluggish economic recovery.
  

• Money market funds continued to record net outflows, albeit at a lower level than in previous quarters. Outflows of EUR 16 billion were recorded in the third quarter, up from net outflows of EUR 51 billion in the second quarter. The decline in outflows reflected the re-emergence of net inflows into money market funds in August, the first monthly inflow since August 2009.
  

• Total net assets of UCITS increased by 3.0% in the third quarter to reach EUR 5,777 billion at end September 2010. Equity funds increased by 4.9% (EUR 80 billion) and bond funds increased by 3.9% (EUR 47 billion) during the quarter, whilst money market fund assets decreased by 3.2 percent (EUR 29 billion).
  

• Total net assets of non-UCITS continued to increase during the third quarter rising 3.3% to reach EUR 1,951 billion at end September 2010. Assets of special funds reserved to institutional investors increased by 4.9% during the third quarter, thanks to continued strong net inflows (EUR 30 billion).
  

• The combined assets of the investment fund market in Europe, i.e. the market for UCITS and non-UCITS, recorded strong growth of 3.1%in the third quarter to reach EUR 7,728 billion at end September 2010. Total assets are up 9.5%over the first nine months of 2010.