The European Fund and Asset Management Association (EFAMA) has released its European Quarterly Statistical Release for the first quarter of 2023, revealing a mixed bag of results for fund managers.
Key developments in the European fund market during Q1 2023 include a 2.5% increase in net assets of UCITS and alternative investment funds (AIFs), reaching a total of €19.57 trillion.
Net sales of UCITS decreased from €128 billion in Q4 2022 to €76 billion, largely attributed to significantly lower net inflows into money market funds (€13 billion compared to €164 billion).
On a positive note, demand for equity and bond UCITS strengthened after three consecutive quarters of negative net sales. AIFs experienced lower net outflows of €13 billion compared to €54 billion in Q4 2022.
Additionally, there was a notable shift in Sustainable Finance Disclosure Regulation (SFDR) Article 9 UCITS sales, totalling €4 billion, compared to €7 billion in Q4 2022. Conversely, Article 8 UCITS suffered a decline in net sales from €128 billion to €10 billion.
Finally, European households increased their net acquisitions of investment funds to €24 billion in Q4 2022, indicating a renewed interest in investment opportunities.
According to Bernard Delbecque, senior director for economics and research at EFAMA, the positive results for the first quarter were primarily driven by strong January net sales of long-term Undertakings for the Collective Investment of Transferable Securities (UCITS).
However, these sales sharply declined after that due to rising concerns about the economic outlook and the collapse of Silicon Valley Bank.
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