Undertakings for collective investment in transferable securities (Ucits) across 29 European countries maintained strong investor interest in February 2025, with net inflows totalling €105bn, an increase from €101bn in January 2025. Luxembourg played a pivotal role in this growth, contributing €39.011bn to the overall Ucits inflows. The data, by the European Fund and Asset Management Association (Efama) on 28 April 2025, highlighted that long-term Ucits and exchange-traded funds (ETFs) experienced notable inflows, further underscoring sustained investor confidence across the sector.
Overall, Ucits recorded inflows of €105bn in February 2025, while alternative investment funds (AIFs) experienced outflows of €4bn, resulting in total net flows of €101bn. This mirrored the inflows observed in January 2025, but with notable shifts in the of these flows. Ucits alone registered €105bn in net inflows, a rise from €101bn in January 2025, with Luxembourg contributing significantly to this growth.
Long-term Ucits and ETFs
A key development in February was the performance of long-term Ucits, which exclude money market funds. These funds saw substantial net inflows of €79bn, compared to €68bn in January 2025. ETF Ucits, in particular, experienced robust inflows, attracting €40bn in February, a significant increase from €27bn in January 2025. This highlighted a growing investor preference for passive investment strategies.
Equity and multi-asset funds
Equity funds continued to attract investor interest, with net inflows rising to €31bn in February 2025, up from €29bn in January 2025. Multi-asset funds also saw positive sales, with net inflows of €12bn, a notable increase from €5bn in January 2025. These figures suggested that investors were showing a greater willingness to take on risk, favouring diversified investment approaches.
Bond and MMFs
In contrast, bond funds experienced a decline in net inflows, with €28bn in net sales in February 2025, compared to €33bn in January 2025. Similarly, Ucits money market funds saw reduced inflows of €26bn, down from €33bn in January 2025. The reduction in money market fund inflows reflected a subtle shift in investor preferences, with more capital flowing into riskier asset classes.
The AIF sector experienced a contrasting trend, with net outflows of €4bn in February 2025, a reversal from the €1bn in net inflows seen in January 2025. This marked a decline in investor confidence within AIFs during the period.
Luxembourg’s performance
Luxembourg saw significant inflows in February 2025. Ucits in Luxembourg recorded €39.011bn in net inflows, contributing to the overall positive performance of Ucits. However, AIFs in Luxembourg saw net outflows of €4.866bn. As a result, the net assets for Ucits in Luxembourg reached €4.922bn, while the net assets for AIFs stood at €1.036bn.
Hailin Yang, senior data analyst at Efama, commented on the February 2025 figures, noting that investor confidence remained steady. “Investor confidence held steady in February, with long-term Ucits building on January’s momentum as all major fund categories recorded fresh net inflows,” Yang stated. “Stronger inflows into equity and multi-asset funds, with a slight weakening of inflows into bond and money market funds, showed higher investor risk appetite in February.”