The European Fund and Asset Management Association (Efama) unveiled its latest monthly Investment Fund Industry Fact Sheet showing strong demand for bond funds in May.
The comprehensive report sheds light on net sales data for Ucits (undertakings for collective investment in transferable securities) and AIFs (alternative investment funds) for May 2023, providing insights at a European level and by individual country of fund domiciliation.
A significant takeaway from the report highlights the continued strength of bond Ucits. These funds have marked their seventh consecutive month of attracting net inflows.
Key findings:
- Ucits and AIFs observed net outflows amounting to €13 billion. This contrasts with the net inflows of €29 billion recorded in April 2023.
- Ucits alone reported net outflows of €7 billion, in comparison to the net inflows of €19 billion in the preceding month.
- Long-term Ucits, which excludes money market funds, documented net outflows of €4 billion, marking a solid decline from the net inflows of €5 billion seen in April 2023.
- Equity funds saw net outflows of €3 billion, mirroring the performance in April 2023. Bond funds registered net inflows of €10 billion, a slight dip from €15 billion in April.
- Multi-asset funds experienced net outflows of €6 billion, on par with the previous month’s figures.
- Ucits money market funds recorded a net outflow of €4 billion, contrasting sharply with the net inflows of EUR 14 billion in April 2023.
- AIFs displayed net outflows of EUR 6 billion, a departure from the net inflows of EUR 10 billion witnessed in April 2023.
- In a positive turn, the total net assets of Ucits and AIFs saw a 0.6% uptick in May, culminating in a total of €19,640 billion.
Bernard Delbecque, senior director for economics and research at EFAMA, remarked, “Bond Ucits persisted in drawing net inflows against a backdrop characterized by interest rates nearing their zenith and a relaxation in inflationary pressures.”
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