The European Fund and Asset Management Association’s (EFAMA) Quarterly Statistical Release for the first quarter of 2019 reports a strong increase in net assets of UCITS and AIFs, driven by the rebound of financial markets.
Net assets of UCITS increased by 7.8 per cent to EUR10,004 billion, while net assets of AIFs increased by 6.4 per cent to EUR6,247 billion.
The release also reports a sharp increase in the demand for bond funds in response to a move towards more dovish monetary policy in Europe and the United States.
Net sales of UCITS and AIF bond funds sales turned positive in Q1 2019, with net inflows of EUR82 billion, compared to net outflows of EUR48 billion in Q4 2018.
Net sales of UCITS bond funds recorded net inflows of EUR79 billion, compared to net outflows of EUR46 billion in Q4 201, while AIF bond funds saw a reversal in flows, from net outflows of EUR2 billion in Q4 2018 to net inflows of EUR3 billion in Q1 2019.
Net sales of UCITS and AIF equity funds recorded net outflows of EUR38 billion, compared to net inflows of EUR3 billion in Q4 2018. UCITS equity funds recorded net outflows of EUR27 billion, compared to net outflows of EUR7 billion in Q4 2018, while AIF equity funds registered net outflows of EUR11 billion, compared to net inflows of 4 billion in Q4 2018.
Bernard Delbecque (pictured), Senior Director for Economics and Research, says: “After the challenges the industry faced in 2018, and coming off net outflows in Q4, the sales we have seen in Q1 represented a positive development for the industry. However, the net outflows from equity funds confirmed that investor confidence in equity markets has yet to return.”