The European Fund and Asset Management Association (Efama), the asset management association, has highlighted a drop in net inflows for undertaking for collective investment in transferable securities (Ucits) and alternative investment funds (AIFs) compared to August.
Net inflows into Ucits and AIFs reached €19 billion in September, a substantial decline from the €82 billion recorded in August. Ucits alone accounted for €19 billion in net inflows, down from €83 billion in the previous month.
Long-term Ucits, excluding money market funds, saw net inflows of €4 billion, a notable drop from €33 billion in August. Within this category, ETF Ucits managed to attract €19 billion in net inflows, slightly below the €20 billion recorded in August. Equity Ucits saw net inflows of €2 billion, a significant decline from €14 billion in August, while Bond Ucits registered €1 billion in net inflows, down from €16 billion. Multi-asset Ucits experienced net outflows of €1 billion, compared to a marginal €0.2 billion outflow in August.
Money market Ucits, which tend to be more resilient in volatile conditions, attracted €15 billion in net inflows, though this was down from the €50 billion recorded in August. Meanwhile, AIFs posted net outflows of €0.2 billion, a slight improvement compared to €1 billion in outflows in August.
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Bernard Delbecque, senior director for economics and research at Efama, attributed the slowdown to several factors: “September witnessed notable outflows from long-term Ucits in some countries, largely driven by rising uncertainties surrounding the interest rate cycle, the upcoming US Presidential election, and the fiscal measures being implemented to address budget deficits in several countries.”
Despite the weaker net inflows, total net assets of Ucits and AIFs grew by 1% during September, reaching €22,723 billion. This highlights the overall resilience of the European investment fund industry amid challenging market conditions.
The fact sheet is published by Efama monthly and presents net sales and net assets data for Ucits and AIFs for 29 European countries: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Liechtenstein, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, and the UK.
