Editor’s note: the EFAMA comments that the figures show the benefits of the European Central Bank’s long term liquidity operations to relieve tension in the banking system; however, subsequent fresh concerns about Greece and the “contagion” caused by the debt position may be reflected in figures for later this year when they are issued.

Net sales of European-registered UCITS funds surged to €91 billion in the first three months of the year, more than reversing the net exodus of €50 billion in the final quarter of 2011, according to the European Fund and Asset Management Association.

The improvement “was the result of increased investor confidence after the launch of the ECB’s longer-term liquidity operations, which helped alleviate tensions in financial markets”, the association said.  

Among long-term UCITS – those funds that exclude money market funds, logged net inflows of €70 billion, compared with outflows of €61 billion in the previous three months, the association said.

All asset classes recorded net inflows in the first quarter, led by bond funds with net sales of €49 billion. “However, the relatively low net sales of equity funds (€9 billion) highlights an element of investor caution,” it said.

Money market funds attracted net inflows for the second consecutive quarter amounting to €22 billion, up from €11 billion in the previous quarter.

EFAMA represents through its 26 member associations and 58 corporate members around €13 trillion in assets under management of which €7.9 trillion was managed by approximately 54,000 funds at the end of 2011.