European UCITS through the roof 28 May 2014Brussels Reporter: Stephen Durham
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The European investment fund industry saw a surge in demand for UCITS in Q1 of 2014 with the total rising to €148 billion, according to statistics from the European Fund and Asset Management Association (EFAMA).
This marks the largest quarterly net inflow since Q1 of 2006 and is a stark contrast when compared with net sales of €51 billion in Q4 2013.
UCITS excluding money market funds (long-term UCITS) experienced net inflows of €134 billion during Q1 2014, up from €72 billion in the previous quarter. Demand for bond funds was the driver behind this large increase, as net inflows reached €61 billion and sales of balanced funds increased to €45 billion.
Net inflows to equity funds remained positive at €27 billion, albeit down from €40 billion in the previous quarter.
Money market funds registered net inflows for the first time since Q1 of 2012. Net sales totalled €14 billion, compared to €21 billion of net outflows in the previous quarter.
Total UCITS net assets rose 3.5 percent during Q1 of 2014 to stand at €7,106 billion at the end of March.
The combined assets of the investment fund market in Europe, including UCITS and non-UCITS, increased by 3.8 percent in Q1 2014 to break through the €10 trillion mark. Total assets in Europe stood at €10,156 billion at the end of March 2014.
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