Ucits net sales fall in 2016, but assets lead to Europe record

Profits upNet sales of Ucits funds fell sharply last year, though assets under management (AUM) in European regulated funds crossed the €14 trillion mark for the first time.

Total Ucits net sales were €275 billion, compared to €590 billion the year before.

“Long-term Ucits” – meaning funds investing in mainstream asset classes but excluding money market funds – saw their sales fall from €513 billion to €169 billion.

Money market funds saw sales increase by €29 billion, to €106 billion.

The European Fund and Asset Management Association (Efama), which produced the figures, said the European Central Bank’s quantitative easing programme boosted Ucits sales in January to April, but the stock market “plunge” in early 2016, weak economic growth and the UK’s vote to leave the European Union “created much uncertainty about the future, which slowed demand for Ucits”. 

Demand for alternative investments was reflected by the increase in sales of regulated alternative funds, from €150 billion in 2015, to €180 billion.

Overall, AUM in Ucits and regulated alternative funds increased to €14,201 billion – the first time AUM has been higher than €14,000 billion.

Net sales contributed to 52% of the rise in total assets over the year, with market appreciation accounting for the remainder of the increase.

Bernard Delbecque, director of economics and research, said Ucits fund sales ended the year positively.

“Ucits enjoyed a rise in net sales in December, thanks to higher net inflows into equity funds and a return to positive net sales of bond funds.”

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