UCITS and AIFs attract EUR430bn in net new money during H1 2021
Net assets of UCITS and AIFs increased by 4.1 per cent in Q2 2021, taking total net new money in H1 2021 to EUR430 billion, according to the latest quarterly European statistics from the European Fund and Asset Management Association (EFAMA).
UCITS net assets grew by 4.5 per cent and net assets of AIFs grew by 3.4 per cent as they cross the EUR20 trillion threshold.
Net sales of UCITS amounted to EUR210 billion, and net inflows into AIFs amounted to 18 billion. During the first half of 2021, UCITS and AIFs attracted EUR430 billion in net new money.
After the record net inflows in Q1 2021 (EUR133 billion), net sales of equity funds declined, but remained historically high at EUR94 billion, due to Investor confidence in the stock market rebound.
Net sales of bond funds amounted to EUR40 billion over the quarter, compared to EUR55 billion in Q1 2021. Net inflows into multi-asset funds increased from EUR37 billion in Q1 2021 to EUR63 billion in Q2 2021.
Investors continued to reduce their net holdings of MMFs in Q2 2021, albeit at a much slower pace than in the previous quarter.
Record breaking investment by European households - European households invested EUR55 billion in investment funds through Q1 2021, a number not seen since Q2 2017. On the other hand, net acquisitions of funds by European insurers and pension funds declined to EUR18 billion, from EUR71 billion in Q4 2020.
Bernard Delbecque, Senior Director for Economics and Research, says: “Net sales of long-term UCITS, in particular equity funds, remained very strong in Q2 2021, as the successful rollout of the Covid-19 vaccination campaign and the recovery of the global economy boosted investor confidence.”