Euro-funds ‘close to historical peak’ in August

Euro-funds ‘close to historical peak’ in August

UCITS and alternative investment funds (AIFs) came close to matching their historical record in August with strong sales, the The European Fund and Asset Management Association (EFAMA) revealed today.

The organisation crunched the data based on sales reports from 29 jurisdictions, representing 99% of all UCITS/AIFs sold.

It found that net sales for both reached €94bn (£83bn, US$109bn) in August, just slightly down from the peak of €96bn (£85bn, US$111bn in July).

While UCITS showed a fall from the previous month (€69bn/£61bn/US$80bn, down from €83bn/£74bn/US$96bn), AIFs showed strong growth to offset the drop.

Total net sales of AIFs in August came in at €25bn (£22bn/US$29bn), almost double July’s figure of €13bn (£11.5bn/US$15bn).

UCITS sales were made up primarily of long-term UCITS, accounting for €44bn, and made up as follows:

  • Net sales of equity funds totalled €5bn, down from €19 bn in July
  • Net sales of bond funds totalled €24bn, down from €29bn in July
  • Net sales of multi-asset funds totalled €14bn, up from €11bn in July

Meanwhile, UCITS money market funds registered net inflows of €25bn, higher than the €22bn registered in July.

EFAMA’s senior director for economics and research Bernard Delbecque, pictured above, said that the strong performance of net inflows into UCITS and AIFs was all the more impressive, coming as they did in the face of a drop in net sales of equity funds against the background of rising geopolitical tensions caused by North Korea’s missile tests.