UCITS and AIF assets grow in Q3
Ongoing demand for long-term UCITS fund in the third quarter suggests that retail investors remained confident in their potential return prospects, the European Fund and Asset Management Association (EFAMA) has said.
Net assets in UCITS and AIFs grew by 2% and 1.3% respectively, reaching the combined total of €20.8trn in Q3, according to the latest data from EFAMA.
In sales terms, UCITS attracted net inflows to the tune of €179bn for the quarter, while AIFS saw €21bn of net new cash, up from the €18bn seen in Q2.
Following three quarters of "exceptionally" high sales, net sales of equity funds slowed in the third quarter against a backdrop of more volatile stock markets, EFAMA said. Nevertheless, they remained robust, according to the organisation.
Across UCITS and AIFs, equity funds took in a total net €58.4bn in Q3.
European investors perform volte-face on money market funds
At the same time investors increased their purchases of bonds and multi-asset funds which, EFAMA highlighted, enabled them to diversify their portfolios. Bonds saw inflows of over €65.8bn.
Net acquisitions of investment funds by European households also reached €117bn in the first half of the year.
Bernard Delbecque, senior director for economics and research, said: "The first half of 2021 was marked by a significant reallocation of savings of European households towards investment funds.
"This could reflect a rise in household awareness on the opportunity cost of saving too much in bank deposits - especially in an environment of ultra-low interest rates and rising inflation.
"The sustained demand for long-term UCITS observed in the third quarter of 2021 suggests that retail investors remained confident in the potential return prospects offered by UCITS."
