EUROPE: EFAMA Releases Statistics for Quarter 3 2008

Monday December 1 2008

The European Fund and Asset Management Association (EFAMA) have today released its statistics and trends in the European funds industry for Quarter 3 of 2008.

Highlights of the Release are as follows:

Due to recent financial fluctuations and a loss of confidence in the stock market, UCITS recorded total net outflows of EUR 193 billion, for the first nine months of 2008, of which EUR 92 billion were in the third quarter. Equity funds have suffered the most closely followed by bond and balanced funds; however money market funds have recovered net inflows.

Again, annual figures for 2008 have shown a notable decrease in European investment fund asset due to market depreciation i.e. EUR 1,065 billion, or 13.5%, between end 2007 and end September 2008.

Regarding UCITS assets at end 2007 net outflows have remained negligible in the United Kingdom and Luxembourg and small in France and Germany (3 % and 4.5 %, respectively). In Spain and Italy have seen net outflows reaching considerable levels (16 % and 19 %, respectively).

Total assets of UCITS have fallen by 6.4% in Q3 to EUR 5,181 billion. Over 77% of the fall reflected a decline in equity fund assets, with losses in stock prices causing 82% of the decline. Total assets in UCITS have decreased by 15.9% in 2008.

Total assets of non-UCITS decreased by 2 % in the third quarter to EUR 1,663 billion and overall, special funds have attracted EUR 46 b+E1illion of net inflows in 2008, with Luxembourg and German funds collecting 96 % of the new money. 2008 has also seen total assets of non-UCITS fall by 4.9 %.

Forecasting into the future, EFAMA states:

With stock prices having fallen so fast in recent months, equity funds have also the potential to attract again net inflows. Falling interest rates against the backdrop of the global economic downturn could create the conditions for a rebound in the demand for bond funds. Yet, this change of direction will require that governments and central banks manage to convince investors that their actions will succeed in restoring financial stability and supporting economic activity on a sustainable basis.

For the detailed Quarterly Statistical Release, please click on the link above.