European Central Bank (ECB) efforts to save the euro were one cause of positive net sales for European funds, which rose 12% last year, says the European Fund and Asset Management Association (Efama).
There were nearly €9 trillion in European investment funds at the end of the year, according to Efama figures released today, of which 70% was in Ucits funds.
Positive market movements accounted for the bulk of the rise, though net inflows made a significant contribution. The association says there were €201 billion of net sales of Ucits funds in 2012, a reversal of the previous year, when there were €97 billion of net outflows.
Ucits bond funds, which had €203 billion in net inflows, were clearly preferred over riskier products such as Ucits equity funds, which attracted just €2 billion in net new money.
Peter de Proft, director general of Efama, says 2012 “was a good year for the European investment fund industry and its clients, thanks to improved financial market conditions, which led to strong demand for Ucits during the year”.
“This increased demand resulted partially from the decisive policy measures taken by the ECB and its commitment to do 'whatever it takes' to save the euro. Progress in reducing fiscal imbalances and strengthening the governance of the euro area also supported investor confidence.”
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