Net assets of UCITS and AIFs reach al-time high of EUR8.77tn
Strong growth (+6.6 per cent) pushed the net assets of UCITS and AIFs up to an all-time high of EUR8.77 trillion, according to the The European Fund and Asset Management Association's (EFAMA) Investment Fund Industry Fact Sheet for Q4 2020.
UCITS net assets increased by 7.6 per cent, while AIF net assets grew by 5.1 per cent.
Net sales of UCITS amounted to EUR226 billion, compared to EUR145 billion in Q3 2020. AIFs attracted EUR64 billion in net new money over the quarter, up from EUR51 billion in Q3 2020.
Net sales of equity funds rose to EUR129 billion, thanks to strong net sales of UCITS equity (EUR122 billion). This outcome sets a new record for quarterly net sales of equity funds.
Net sales of multi-asset funds increased from EUR13 billion in Q3 2020 to EUR39 billion in Q4 2020. Bond funds continued to attract positive net inflows, albeit less than in Q2 and Q3 2020.
Net sales of money market funds (MMFs) remained high - Demand for MMFs amounted to EUR44 billion, comparable to EUR41 billion in Q3 2020.
Bernard Delbecque, Senior Director for Economics and Research, says: “Investors’ confidence strengthened in Q4 thanks to positive vaccine news, driving a surge in UCITS and AIFs net sales and bringing European investment fund assets to an all-time high. The developments through the year of 2020 showcase that despite the impact of the pandemic on financial markets in March, net sales promptly returned to positive territory, reflecting the attractiveness of UCITS and AIFs as investment vehicles.”