Total net assets of Ucits and AIFs increased by 1.3% in July, reaching a total value of €20.132trn, according to figures from the European Fund and Asset Management Association. This uptick further signifies that despite its rollercoaster year, the European investment fund industry appears to be on a recovery path, at least for the time being.
Undertakings for collective investment in transferable securities (Ucits) and alternative investment funds (AIFs) experienced a notable reversal in fortunes, recording net inflows of €27bn in July, as opposed to the net outflows of €8bn seen in June, Efama on Tuesday 26 September 2023. Within Ucits, there were net inflows of €19bn, a marked recovery from June’s €15bn in net outflows. Long-term Ucits, not including money market funds, also saw a resurgence with net inflows of €8bn, bouncing back from the €11bn in outflows in June.
Maintaining its leadership role in the European investment fund sector, Luxembourg housed a significant share of both Ucits and AIFs. With net assets in Ucits reaching €4.276bn, the grand duchy led the way, capturing a 33.4% market share. In the AIF space, it held €968bn in assets, making up 13.2% of the market, trailing only behind Germany at 29% and France at 18.3%. Overall, Luxembourg-domiciled funds accounted for over a quarter (26%) of the total Ucits and AIFs in the 29 European countries represented by Efama.
Year of fluctuations across asset classes
In terms of asset classes within Ucits, equity funds posted positive net sales of €3bn, in contrast to June’s €7bn in net outflows. Bond funds similarly saw a surge in net inflows to €14bn, doubling the €7bn recorded in June.
Multi-asset funds, however, continued to experience challenges, registering net outflows of €6bn, although this was an improvement on the €9bn in outflows in June. Money market funds under Ucits also improved, registering net inflows of €11bn, up from €4bn in outflows in June.
Fluctuations across different alternative fund classes were relatively smaller.
Bernard Delbecque, Efama’s senior director for economics and research, noted the improved landscape, stating, “After several months of net outflows, net sales of Ucits and AIF equity funds returned to positive territory in July, in the context of stronger stock markets.”