UCITS sales hit 18-month high as demand for bond funds increases

Net sales of UCITS and AIFs totalled EUR94 billion in July, up from EUR23 billion in June, while net sales of UCITS rose to a level not seen in the last 18 months, according top the latest Investment Fund Industry Fact Sheet form The European Fund and Asset Management Association (EFAMA).

UCITS saw net inflows of EUR86 billion, compared to EUR7 billion in June. Long-term UCITS (UCITS excluding money market funds) recorded net inflows of EUR40 billion, up from EUR19 billion in June.   
Similar to June, equity funds registered net outflows of EUR1 billion, while net sales of bond funds increased to EUR39 billion, up from EUR27 billion in June, and multi-asset funds recorded net inflows of EUR4 billion, compared to net outflows of EUR6 billion.
UCITS money market funds recorded net inflows of EUR46 billion, compared to net outflows of EUR12 billion in June. AIFs registered net inflows of EUR8 billion, down from EUR17 billion in June, while total net assets of UCITS and AIFs increased by 1.8 per cent to EUR16,904 billion.
Bernard Delbecque (pictured), Senior Director for Economics and Research, says: “Net sales of UCITS were strong in June. This was driven primarily by high demand for bond funds as investors continue to anticipate further monetary stimulus; and for money market funds, which offer investors a good place to invest cash holdings in times of uncertainty”.