Net sales of UCITs and AIFS boosted by increased investor confidence says EFAMA
The European Fund and Asset Management Association (EFAMA) has published its latest quarterly European statistics, tracking and analysing trends in European regulated open-ended fund assets and net flows during Q2 2021.
The data includes insight on the owners of investment funds in Europe and their net purchases of funds during the first quarter of 2021.
The main developments through the quarter are as follows:
• Net assets of UCITS and AIFs increased by 4.1 per cent in Q2 2021 – UCITS net assets grew by 4.5 per cent and net assets of AIFs grew by 3.4 per cent as they crossed the EUR20 trillion threshold.
• UCITS and AIFs attracted EUR228 billion of net inflows over the quarter - Net sales of UCITS amounted to EUR210 billion, and net inflows into AIFs amounted to EUR18 billion. During the first half of 2021, UCITS and AIFs attracted EUR430 billion in net new money.
• Demand for equity funds stayed strong - After the record net inflows in Q1 2021 (EUR133 billion), net sales of equity funds declined, but remained historically high at EUR94 billion, due to investor confidence in the stock market rebound.
• Net sales of other long-term funds remained robust - Net sales of bond funds amounted to EUR40 billion over the quarter, compared to EUR55 billion in Q1 2021. Net inflows into multi-asset funds increased from EUR37 billion in Q1 2021 to EUR63 billion in Q2 2021.
• Money market funds (MMFs) recorded net outflows (EUR18 billion) - Investors continued to reduce their net holdings of MMFs in Q2 2021, albeit at a much slower pace than in the previous quarter.
• Record breaking investment by European households - European households invested EUR55 billion in investment funds through Q1 2021, a number not seen since Q2 2017. On the other hand, net acquisitions of funds by European insurers and pension funds declined to EUR18 billion, from EUR71 billion in Q4 2020.
Bernard Delbecque, Senior Director for Economics and Research, says: “Net sales of long-term UCITS, in particular equity funds, remained very strong in Q2 2021, as the successful rollout of the Covid-19 vaccination campaign and the recovery of the global economy boosted investor confidence.”