Demand for UCITS falls as investors remain cautious, says EFAMA

clock
Demand for UCITS falls as investors remain cautious, says EFAMA

Demand for UCITS fell in September as investors remain cautious, the latest figures published by the European Fund and Asset Management Association (EFAMA) have revealed.

The EFAMA has published its latest Investment Fund Industry Fact Sheet, which provides net sales of UCITS (Undertakings for Collective Investment in Transferable Securities) and Alternative Investment Funds (AIFs) for September 2018.

Among the figures, UCITS and AIFs registered net outflows of €22bn in September 2018, compared to net inflows of €20bn in August.

Long-term UCITS (UCITS excluding money market funds) recorded net outflows of €11bn, compared to net inflows of €8bn in August.

Equity funds registered inflows amounting to €4bn in September, compared to €5bn in August, while bond funds sales remained negative, with net outflows of €10bn, compared to €2bn in August.

Multi-asset funds sales meanwhile, turned negative in September, with net outflows of €1bn, compared to net inflows of €6bn in August.

UCITS money market funds experienced net outflows of €21bn, reflecting the cycle of net withdrawals observed in general at the end of each quarter.

Political and trade tensions
Net sales of AIFs recorded net inflows of €9bn, down from €18bn in August, while total net assets of UCITS and AIFs increased by 0.1% in September to €16tn, compared to €15.9tn at the end of August.

Bernard Delbecque, EFAMA’s senior director for economics and research, said: “Demand for long-term UCITS fell in September in the face of mounting political and trade tensions and pressure on interest rates.”

Author spotlight

Gary Robinson

Commercial Director, Head of Video at International Investment.