Net sales for European investment funds in January increased and were driven by long-term Ucits funds where inflows were more than €50 billion, according to figures from the European Fund and Asset Management Association (Efama).
Net sales across Ucits and alternative investment funds (AIFs) were €29 billion, which was €6 billion more than in December 2022.
Positive fund flows were mainly seen in funds investing in mainstream securites through Ucits funds and were explained by hopes that interest rates would soon peak. Long-term Ucits, which excludes money market funds, registered net sales of €54 billion – up from €19 billion in December 2022.
Money came out of money market funds (€12 billion) at a higher rate than in December (€3 billion), which is usually seen as a sign that investors are prepared to take more risk.
Since December 2022, net sales of equity funds increased by €7 billion and bond funds by €15 billion. Net inflows of multi-asset funds also doubled from €2 billion to €4 billion during the same period.
Bernard Delbecque, senior director for Economics and Research, Efama, said: “Net sales of Ucits equity and bond funds continued to rise in January as investors regained trust in the economy and hoped that the interest rate peak was in sight.”
Meanwhile, AIFs also registered double the net outflows – of €14 billion – since December 2022.
Total net assets for all funds were €19.674 trillion, an increase of 2.8% in January.
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