Ucits net flows jump by €50 billion in a month

Screen_graphJanuary’s net flows into Ucits funds in Europe were €71 billion – a jump of nearly £50 billion over December and described as a record.

Long-term Ucits, which excludes money market funds, recorded net inflows of €40 billion, compared to €18 billion in December.

The healthier sales will cheer the funds industry, which saw Ucits fund sales fall by half last year.

Combined sales of Ucits and regulated alternative funds in January were €92 billion, an increase of €60 billion, said the European Fund and Asset Management Association (Efama).

There was a significant switch from Ucits equity funds to bond funds, and mixed asset funds also jumped.

While equity funds recorded net sales of €6 billion (a fall of €3 billion from December), bond fund net sales surged from €6 billion to €20 billion in the same two-month period.

Net sales of multi-asset funds increased from €1 billion in December to €10 billion in January, reflecting a similar pattern of demand for allocation funds seen in UK fund sales figures for February.

However, money market funds also saw net sales of €31 billion, up from €3 billion in December 2016.

Regulated alternative funds saw net inflows of €21 billion, nearly double that of December.

Bernard Delbecque, senior director for economics and research at Efama commented: “Net sales of Ucits reached a level never reached since May 2016, thanks to strong demand for both long-term and money market funds.”

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