Combined assets of European UCITS and non-UCITS surpassed the EUR11 trillion mark for the first time ever to end the quarter at EUR11,057 billion, according to The European Fun and Asset Management Association (EFAMA).
UCITS recorded increased net inflows of EUR130 billion in the third quarter of 2014, up from EUR126 billion in the second quarter of the year. This marked the third successive quarter of UCITS net sales surpassing the EUR100 billion mark.
So far in 2014, UCITS attracted EUR405 billion in net inflows, more than double the EUR178 billion attracted over the same period in 2013.
Long-term UCITS, ie UCITS excluding money market funds, continued to register strong net inflows of EUR117 billion, albeit down compared to EUR148 billion in the second quarter.
Demand for bond funds remained high in the third quarter (EUR47 billion compared to EUR56 billion in the second quarter). Net sales of balanced funds also posted strong net inflows during the quarter (EUR52 billion compared to EUR56 billion in the second quarter). On the other hand, equity fund net sales fell to EUR14 billion, from EUR24 billion in the second quarter, owing to rising geopolitical and economic uncertainties during the quarter.
Money market funds posted net inflows of EUR13 billion in the third quarter, against net outflows of EUR22 billion recorded in the second quarter.
Total net assets of UCITS increased by 4.3 per cent during the third quarter to stand at EUR7,807 billion at end September 2013. Net assets of balanced funds increased 5.9 per cent during the quarter, followed by bond funds with growth of 4.7 per cent. Net assets of equity funds registered growth in assets of 3.3 per cent. Money market funds also registered a rise in assets of 4.1 per cent during the quarter.
Total net assets of non-UCITS increased by 3.1 per cent in the third quarter to stand at EUR3,250 billion at end September 2013. Assets of special funds reserved to institutional investors grew by 3.3 per cent during the quarter.