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European Fund and Asset Management Association

Efama: Luxembourg AIFs saw net outflows of €1.7bn in May



European Ucits and AIFs together saw net outflows of €13.4bn in May 2023, compared to net inflows of €29bn in April, said Efama data released on 27 July. Photo: Shutterstock

European Ucits and AIFs together saw net outflows of €13.4bn in May 2023, compared to net inflows of €29bn in April, said Efama data released on 27 July. Photo: Shutterstock

Data released by the European Fund and Asset Management Association (Efama) on 27 July show that Luxembourg alternative investment funds (AIFs) saw €1.731bn of net outflows in May 2023. European AIFs overall registered €5.902bn of net outflows.

Efama’s latest investment fund industry fact sheet, published on 27 July, stated that European Ucits (undertaking for collective investment in transferable securities) and AIFs (alternative investment funds) saw net outflows of €13bn in May 2023, compared to net inflows of €29bn in April 2023.

European Ucits recorded net outflows of €7.492bn in May while AIFs saw outflows of €5.902bn.

Luxembourg, Ireland both saw Ucits outflows in May

Fund centres Luxembourg and Ireland both saw net outflows for Ucits in May 2023--the grand duchy recorded net outflows of €9.378bn while Ireland saw €1.387bn of net outflows.

In terms of alternative investment funds, however, Luxembourg saw net outflows of €1.731bn in May while Ireland recorded inflows of €540m.

Luxembourg still has over €4,201bn of net assets in Ucits and €960.7bn in AIFs, while Ireland counts €2,920bn of net assets in Ucits and €842.3bn in AIFs as of the end of May.

Bond Ucits attracting net inflows

European Ucits bond funds in May saw net inflows of €10bn in May 2023, down from €15bn of net inflows in April, according to Efama data. Equity funds, multi-asset funds and money market funds all registered net outflows.

“Bond Ucits continued to attract net inflows for the seventh month in a row, against the backdrop of interest rates close to their peaks and easing inflation pressures,” said Bernard Delbecque, senior director for economics and research at Efama, in a press release from the association.

Find Efama’s full investment fund industry fact sheet for May 2023 here.