Net flows to UCITS reached EUR 84 billion in the second quarter of 2007, EUR 22 billion less than in the first quarter. A fall in net inflows in money market funds explains most of the difference. Balanced funds recorded the highest level of net inflows (EUR 28 billion), followed by money market funds (EUR 26 billion), other UCITS (EUR 23 billion) and bond funds (EUR 12 billion). For the second consecutive quarter, equity funds recorded net outflows, despite buoyant stock markets in the spring. This indicates that investors' appetite for risk exposure did not recover in the second quarter from the stock market turmoil at the end of February and in early March. This situation is likely to persist in the third quarter as a consequence of the crisis in the US subprime market and the financial contagion to the global credit and stock markets.