Net sales of equity Ucits surged to their highest level in 35 months, driven by inflows into equity ETFs and a recovery in non-ETF equity funds, according to the European Fund and Asset Management Association (Efama).
The report highlighted several key trends for May. Ucits and AIFs combined saw net inflows of €37 billion, a slight decrease from April’s €42 billion. However, Ucits maintained stable net inflows of €35 billion, mirroring the previous month’s performance. Excluding money market funds, long-term Ucits experienced a remarkable rise in net inflows, reaching €47 billion, up from €21 billion in April.
Equity funds led the way with net inflows of €26 billion, a sharp contrast to the net outflows of €1 billion in April. Bond funds also saw significant net inflows of €21 billion, albeit down from €27 billion the previous month. Ucits ETFs doubled their net inflows to €26 billion, compared to €13 billion in April, highlighting their growing popularity among investors.
April saw bond Ucits inflows and equity Ucits outflows: Efama
Ucits money market funds faced net outflows of €12 billion, reversing the €14 billion net inflows seen in April. Multi-asset funds continued to struggle with net outflows of €0.3 billion, though this was an improvement from the €7 billion net outflows in April.
Thomas Tilley, senior economist at Efama, said: “May 2024 witnessed a notable rise in net sales of equity Ucits, reflecting strong investor confidence. The resurgence was particularly fueled by substantial net inflows into equity ETFs and a rebound in non-ETF equity funds, underscoring the growing appetite for equity investments.”
The total net assets of Ucits and AIFs increased by 1.3%, reaching €21,735 billion. This growth underscores the resilience and attractiveness of the European fund market amid fluctuating economic conditions.
