Ucits and Aifs sales decline in February

Ucits, Aifs, sales, February, investor, caution, European, Fund, Asset Management, EfamaDemand for Ucits and Aifs declined throughout February as greater investor caution returned, according to the European Fund and Asset Management Association (Efama).

The latest monthly data revealed that Ucits and Aifs recorded net inflows of €2 billion in February, a significant drop from €29 billion in January.

Total net assets of Ucits and Aifs also decreased by 0.3% in February to €19.6 trillion.

Low net sales were driven by a decline in net sales of Ucits from €43 billion in January to €3 billion in February, which was the worst month for the asset class since September 2022.

Bernard Delbecque, senior director for economics and research at Efama, said: “Following a strong rebound in January, net sales of UCITS dropped sharply in February amid rising concerns about the global growth outlook and sticky core inflation, which increased investors’ caution.”

Bond funds inflows decreased from €29 billion in January to €15 billion in February.

Multi-asset funds also recorded net outflows of €5 billion, significantly lower than net inflows of €2 billion the month prior.

Net sales of equity funds dropped from €23 billion in January to €2 billion in February, despite increased interest from UK investors.

However, optimism remains as Aifs reported net outflows of €1 billion in February, compared to net outflows of €14 billion the month prior.

Even though net sales of long-term Ucits decreased from €54 billion to €15 billion, February was the third-best month for net sales since the same time last year.

The increased investor caution across February contrasts with the renewed investor optimism reported in January by Efama.

During the month, positive fund flows were mainly seen in funds investing in mainstream securities and were explained by hopes that interest rates would soon peak.

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