Net sales of UCITS rebounded to EUR71 billion in the second quarter of 2016, from net outflows of EUR7 billion in the previous quarter, according to the European Fund and Asset Management Association’s (EFAMA) latest Quarterly Statistical Release.
Long-term UCITS – UCITS excluding money market funds – posted net inflows of EUR44 billion, compared to net outflows of EUR5 billion in Q1 2016.
Equity funds continued to record net outflows of EUR18 billion compared to EUR4 billion in Q1 2016, while net sales of multi-asset funds increased to EUR14 billion from EUR6 billion in Q1 2016.
Net sales of bond funds rebounded to EUR42 billion from net outflows of EUR9 billion in Q1 2016 and net sales of other UCITS increased to EUR5 billion, from EUR2 billion in Q1 2016.
UCITS money market funds experienced net inflows of EUR28 billion, against net outflows of EUR2 billion in Q1 2016, while AIF net sales increased to EUR55 billion, from EUR43 billion in Q1 2016
Total European investment fund net assets increased by 2.1 per cent in Q2 2016 to EUR13,290 billion.
Net assets of UCITS went up by 1.7 per cent to EUR8,073 billion, and total net assets of AIFs increased by 2.8 per cent to EUR5,217 billion.
Bernard Delbecque (pictured), senior director for economics and research at EFAMA, says: "Net sales of UCITS rebounded during the second quarter of 2016 thanks a signification increase in the demand for bond funds and money market funds, which can be partly explained by the low interest rate environment and renewed expectations of further falls in interest rates.”