Europeans regain appetite for risk

European investors regained an appetite
for riskier assets in 2009, a study by the European Fund and Asset
Management Association (EFAMA) reveals.

This was reflected in inflows into undertakings
for collective investments in transferable securities (UCITS) which
excluding money market funds reflected net inflows of €165bn
($252bn) compared with net outflows of €420bn in 2008.

Asset allocation in UCITS-regulated, open-ended
funds in 2009 was marginally in favour of bond funds which saw net
inflows of €72bn.

Equity funds followed with a net inflow of
€66bn and balanced funds with net inflows of €44bn.

Investors withdrew a net €43bn from money
market funds in 2009, a significant reversal from the €64bn net
investment in these funds in 2008.

Overall, investment fund assets in Europe rose
15.6% in 2009 from €6.088trn at the end of 2008 to €7.039trn at the
end of 2009.

EFAMA noted that, at the end of 2009,
UCITS-regulated products accounted for €5.3trn, or 75% of the
total.

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